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29-04-2021, 02:14 PM
#2621
Reconk the next takeover price will be at least $8 in the front?
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29-04-2021, 02:34 PM
#2622
Member
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!
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30-04-2021, 10:12 AM
#2623
Member
Originally Posted by Jaa
So a radiologist is worth almost $10m each?
Looking at the share register, looks like most radiologists own either 1% or 2% shares.
Still a pretty tidy sum. I wonder what they paid to buy in?
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30-04-2021, 10:37 AM
#2624
Originally Posted by lissica
Looking at the share register, looks like most radiologists own either 1% or 2% shares.
Still a pretty tidy sum. I wonder what they paid to buy in?
Are we talking radiologists' shareholdings? Or the price that IFT is paying per "working radiologist" ? I thought it was the latter.
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30-04-2021, 11:05 AM
#2625
Member
Originally Posted by macduffy
Are we talking radiologists' shareholdings? Or the price that IFT is paying per "working radiologist" ? I thought it was the latter.
I was talking shareholdings. After all, you don't value a business by the number of staff that work there.
There are also radiographers and admin.
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30-04-2021, 02:14 PM
#2626
Originally Posted by lissica
I was talking shareholdings. After all, you don't value a business by the number of staff that work there.
There are also radiographers and admin.
No, but the cost per radiologist's output/revenue contribution might be a useful check against overpaying for the asset.
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30-04-2021, 03:55 PM
#2627
Originally Posted by macduffy
Are we talking radiologists' shareholdings? Or the price that IFT is paying per "working radiologist" ? I thought it was the latter.
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?
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30-04-2021, 04:25 PM
#2628
Member
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.
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30-04-2021, 05:59 PM
#2629
Member
Originally Posted by Jaa
I was talking about the cost per working radiologist of which Infratil said there were 90.
The majority of their staff would be radiographers/sonographers.
Originally Posted by Jaa
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?
Likely will be non-competition clauses, and also the minority stake as disincentive. They also have a pretty wide footprint- so easiest to refer to for convenience.
Last edited by lissica; 30-04-2021 at 06:34 PM.
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30-04-2021, 06:03 PM
#2630
Member
Originally Posted by macduffy
No, but the cost per radiologist's output/revenue contribution might be a useful check against overpaying for the asset.
They would be salaried or contracted, but the business isn't just reporting on imaging, they actually do the imaging.
Last edited by lissica; 30-04-2021 at 06:33 PM.
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