They haven’t been trading for 12 months yet, haven’t seen full year results at this stage. Buying was at 5x EBITDA. Don’t know how you can establish practices current EBITDA as being lower than at time of purchase. They don’t release individual practice numbers. Note dental vans which were purchased for aprox $4m (from memory may be wrong sorry) haven’t been operating. That’s a substantial amount of revenue absent based on their purchase price. Second quarter almost back to projected figures, despite Dental vans still not operating (believe they said either February or March as planned date for getting them back on the road). They are most recent player in the Dental roll up game, with a different model, designed to appeal to more active and engaged practice owners. (I don’t know if this has been achieved but that’s the business model). Don’t know about your low hanging fruit comment, again practice purchase based on multiple of EBITDA, which is typical of Corp. acquisitions.
SIL Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
