International Nursing Services Inc, old (NURS) new (MDIX) Message Board

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Microcap & Penny Stocks : International Nursing Services Inc, old (NURS) new (MDIX)

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To: peter michaelson who wrote (2204)	8/9/1998 9:40:00 PM
From: Mike Moran	Read Replies (1) of 2911

Peter... The Banyan deal offered Medix a total of $7 million cash and $2 million stock. For the sake of this discussion, let's say that the $2 million in stock was/is valueless. That would leave, assuming the Banyan deal were still viable (if it ever was), about $7 million cash for what amounts to about $26 million in revenue and $1.7 million EBITDA. I looked the other day, because I know nothing about the sale value of service businesses, and found some stuff in a 1997 Merrill-Lynch report that stated that licenced medical service businesses sell for between 2.5 times and 4 times EBITDA. I would guess the Medix businesses are licensed. Still valuing the Banyan deal only for its cash, I see that Banyan offered the very top end of the scale, and then threw in the stock on top of it. Guess that's a reason why it didn't happen. However, using that same formula, and assuming there isn't a deep dark secret at Medix that accounted for the Banyan deal blowing up, a sale of assets in the middle of the scale will yield about $5-$5.5 million in a cash deal. Even accounting for liabilities, that's still north of $.25/share.

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