On your points; 2) These are small clinics they're buying, there is no 'director'. The previous owner may stay, but if they have a clinic of 6 staff (3 FT profs + owner + 2 reception) & a one or two of the professionals leave. This is very typical from what I see. That EBITDA you went on about drops by 20-30%, fixed costs reduce marginally & virtually all profit is wiped out.
3) Except when you have to offer 90k+ to graduates just to attract someone when the going rate is more like 70k. They typically get the low gpa, money focused graduates.
4) There is no over supply of podiatry graduates. That industry is essentially fully employed, next to no one graduates without a job.
5) Proven record? the entire MFD business model is from guys called Greg Dower (an elvis impersonator) & Darren Stewart. I can attest to their lack of 'accounting' & organisation in running their business.
6) It's less skin in the game than they had 12 months ago.
8) DBS was a fantastically run business by genuine people, those people are leaving / have already left. Will be interesting to see what future there is here, remember DBS supplies hundreds & hundreds of clinics outside MFD.
iOrthotics is a joke, a literal rort on medicare rebates. Their clinical function is soo limited, their effective designs certified prehistoric, their price bottom dollar. They punch them out with no care better than any off the shelf product that doesn't attract the rebate. I expect the government will re-price these &/or set a minimum standard for custom orthosis.
They use a single pass scan from under... It's a turd packaged with a laser. Partnered with UQ. Funny thing is UQ don't have a podiatry school.
9) I think you'll find many 'small' business health clinics are surprisingly efficient.
People go to see a podiatrist, a person, not for the brand or for the place. If you can't attract & retain good podiatrists your business is dead.
HLA Price at posting:
86.0¢ Sentiment: Sell Disclosure: Not Held
