I don't disagree with a lot of what you've said, but...

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Dingus21

380 Posts.

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08/09/23

13:54

Post #: 69786171
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Originally posted by Motoracebeerguy: ↑

Dingus21 I cant see any synergies in a business like this. The operating systems for Allied Health are subscription based and inexpensive hence no scale advantage there of any note. Co locating maybe a bit however you still need to pay for space. You saving there is potential for less admin however the downside for these guys is much higher corporate overhead than say a medium sized practice.

All I can see is utilisation of excess capacity if it exits. I get it if they are paying practitioners 35 hours per week and said practitioner is billing out 20 hours as an example. Marketing in Allied Health is also a little bit tricky as you cant have testimonials. Again you don't need marketing if your practitioners are full (waste of money obviously).

Results would support my current assumptions Im just wondering how PEP see turning it around. Do you know what they bring to the table as far as potential for additional referral etc?

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I don't disagree with a lot of what you've said, but none of this is necessarily required for this to be a successful investment.

Double or triple EBITDA by buying businesses at 5x over the next 3-5 years and the then IPO for say 10x EBITDA when market conditions for small/medium cap stocks improve.

I think PEP will hold management much more accountable..I'm not a massive fan of the current CEO and I almost fell off my chair when he used Covid as an excuse in the full year results.

My biggest concern was actually CAPEX which nobody else seems too concerned about on here.
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