Premier Health of America Inc V.PHA

Acquisitions or debt management?

[colourama]

It's been nearly a year since PHA's acquisition of CHCA in Ontario. What sort of financial ability do they have for adding more agencies via acquisition? Is it more prudent to focus on debt management first?

I am tempted to add here.

[Torontojay]

In the last 12 months the company achieved ~ $5,776k in ebitda. Net debt is ~ $ 24,949k and most financial covenants require the borrower to have debt no more than 3-4 times Ebitda. They are slightly above that number but they have significant working capital/accounts receivables that can be converted to cash in the near future. If they can reduce debt to ebitda under 3, then I'm not too