acquisitions , page-4

Accepted-that my opinion is completely based on assumption. I think that most of the principles will decide after their contracted time is up (whatever this is) that they would prefer to pay a practice manager than pay the 1300smiles management team 60% of Revenue to manage. This is based on the belief that they are business people. The reason I assume they have entered into this is because of the 10 million dollar carrot which they will receive in a very tax efficient way.
Also they may have fears that with the exponential increase in Dental graduates they will not be able to continue to achieve the profitability they have in the past so they are selling at what they consider the top of the Market.
Given they have a lab and specialists they may see some value in the rest of the 1300smiles practises referring work? If they are like most inner city Dentists at the moment work would be something they are looking for!
I think the goodwill in this location will be very much attached to the personalities. It is within walking distance of the T and G building on Queen St Mall. (known in the profession as the Tooth and Gum Building because of the high number of Dental Practices)
If you are interested look on the 1300 website at the names of the Dentists that now work in their existing Practices then look back at the acquisition announcements to see the names of the people who were bought out. Most of the selling Dentists are not staying?
What may have masked this in the figures so far was the CDDS and the past shortage of Dentists.
Its just my opinion and I accept I could be wrong. There was no way I thought it would go on this long!
Why are they paying so high for this one? I think the previous purchases where on a return of around 25%?