Your point about about ""two or three players get(ting) sufficient scale somehow make(ing) it easier and cheaper for insurance companies to deal with them.." is, I think a very relevant and well-made one.
Interesting that you should compare these two roll-up categories.
I have to say, given all the regulatory uncertainties surrounding the Aged Care sector, as well as the complexity of the funding models, the financially engineered shareholder returns, and the political sensitivities around pricing structures, consolidating the the auto repair industry in Australia looks like a positively vanilla exercise, by comparison.
Put another way, I'd far sooner by buy AMA on 12x EV/EBITDA than JHC or EHE on similar multiples because, at least with the former I will be able to sleep a bit easier at night, not having to worry what regulatory torpedo might be fired from Canberra or about hundreds of millions of dollars of contingent liabilities sitting on my balance sheet or how I my investment finances itself in the event of possible changes in the funding mix.
AMA Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
