Reconk the next takeover price will be at least $8 in the front?
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Reconk the next takeover price will be at least $8 in the front?
From the announcement "Enterprise Value of NZ$867 million implies an EV/EBITDA multiple of 12.6-13.3x". There are 46 clinics, so an average "value" of $19m per clinic, not sure how many radiologists there are per clinic. This compares with a "value" per clinic for QScan of $11m. The interesting thing for me is the growth in revenue expected through these clinics, funded through government subsidy and medical insurance. Socialised medicine providing opportunities for capitalists!
I was talking about the cost per working radiologist of which Infratil said there were 90. With an enterprise value of $867m seems like an incredible price to pay to me. I am sure there are other staff, expensive equipment and government contracts but these can move over time or become obsolete.
Lissica's point is valid too, what's to stop a number of those radiologists that had 1-2% shareholdings leaving and investing their proceeds in founding a competitor?
Scale. Their retention of 40% shareholding - IFT's track record promises future rewards. Possibly non-compete.Quote:
Lissica's point is valid too, what's to stop a number of those radiologists that had 1-2% shareholdings leaving and investing their proceeds in founding a competitor?