Patient Home Monitoring (PHM-V) has provided an update on its large and growing pipeline of potential acquisition targets. In preparation for these potential upcoming acquisitions, PHM also announced that its chief executive officer, Bob Kusher, has decided to create a board of advisers to offer additional expertise about integrating acquisitions and increasing revenue through cross-selling efforts based on their extensive knowledge of the field.
Acquisition pipeline -- 12 active acquisition candidates
PHM is addressing a large and fragmented market of small, profitable businesses providing health care services to chronically ill patients. PHM began to create the pipeline of potential acquisition targets in June, 2013, in order to expand its service offerings as well as total patients serviced.
Offers made to four companies
As of the date of this announcement, PHM had made initial non-binding offers to acquire four separate businesses. The four acquisition targets have a combined trailing 12-month EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.5-million, each ranging from $750,000 to $1.9-million in EBTIDA. PHM will perform additional due diligence on these companies before executing a letter of intent (LOI). Assuming these acquisition targets pass the due diligence process and an LOI is executed, PHM would next sign a binding purchase agreement and close the acquisitions. PHM expects that it can close all four acquisitions with its current balance sheet. Depending upon due diligence, and other intervening opportunities from its growing pipeline that may be presented, PHM may move forward more or less aggressively with these targets.
Initial due diligence with eight additional companies
PHM has identified and is in active discussions with eight additional acquisition target companies that it has established as qualified and motivated to sell. These companies are in the initial due diligence process where PHM's merger and acquisition team is determining historical financial information and gathering general market intelligence about the target and their markets.
PHM continues to build its deal pipeline on a weekly basis through an assortment of finders and market participants.
"I am excited about our future acquisition prospects," said Bob Kusher, CEO of PHM. "I have decided to recruit an experienced board to advise me on integrating each acquisition, with a particular focus on maximizing revenue per patient served. I believe this cross-sell strategy works because of our high-touch service model, we believe PHM is the best-positioned company in the market to provide more and more services for each of our newly acquired patients. With a seemingly unlimited amount of acquisition targets, I believe we have a model for significant profit growth in the near term."
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