LHC lifehealthcare group limited

MVA acquisition overpaid ?

  1. 181 Posts.
    I'm wondering if the last acquisition is overpaid ? FY 2015 MVA group revenues 5.7 M for a price paid 9 M (excluding earn-out payment) so the business is valued 1.6 x revenues, LHC is trading 1.3 x revenues and 7.5 x FY2015 EBITDA right now ... and according to the management " the gross margin and operating metrics of MVA are consistant with life healthcare's other businesses"
    let's say thay paid it 9 x ebidta (using LHC margin), it seems a bit pricey to me ... (LHC FY2015 ebidta margin 17.5 %)
    I just hope MVA has a lot of cash in the bank ...
 
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