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11/04/18
01:09
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Originally posted by Loscartographer
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From my understanding the uplift in revenue is based on their acquisition model of buying earnings accretive practices rather than by organic growth which has been pegged at single digits. Synstrat is a business broker for Dental Clinics so have no doubt that it has a biased lean. What is important here is whether they can meet and potentially exceed prospectus. The majority of Morgans floats are set with reasonably low hurdles that can be bettered to provide market momentum.
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Have you read their prospectus? The uplift in ebitda is not from additional practices.
Further, let’s assume it was. Buying 35% EXTRA ebitda would be VERY capital intensive. Where would that capital come from? Doesn’t that concern you?
Trust me, it’s not from acquisitions. They are saying they can get that uplift from what they acquire initially.