The Next WRR, page-2

I agree with your view on David Tonuri, he knows what he is doing.

Further, the types of businesses COO are looking to acquire are very much in a niche. Software businesses in niche healthcare markets with ageing vendors, i.e they will likely get a good price as the vendors need to sell and have limited other exit strategies. So I expect the multiple will be good.

Key here is the downside is limited. The core business is incredibly sticky, there are some initiatives available to maintain/improve earnings and they have stated they are cutting costs.

The biggest player in Corum's market is Fred IT Group, Corum is a close second, it's basically a duopoly. Telstra's e-health division took a stake in Fred IT Group 18 months ago, paying $25m for 50%. There is interest in this space.

http://www.copyright link/business/...-nears-100m-with-fred-it-stake-20131001-jh0uf