They often do buybacks of the clinic class shares later, (if people want to leave etc). So these clinic class shares are bought back at the similar low price that they are offered. This reduces the impact of this low price dilution. Overall, I think it is worthwhile to have this profit sharing arrangement. As it is a good incentive for people / new clinics to come on board.
Good point on the improved EBITDA margins with BIM. Similar to what I said, they can learn more from different groups and different clinics on how to get the best results and best margin. Hopefully this will be the case here.
The business is going to be hard to value while they are doing so many acquisitions, but that will get easier over time as they get bigger and more stable and acquisitions make less of a per share impact.
HLA Price at posting:
$2.20 Sentiment: Buy Disclosure: Held
