Is it just one? There were several mobile units with one or more chairs involved and operations and cashflow have effectively been ‘curtailed’ for the time being. The other questions that immediately arise out of this are (in no particular order):- Smiles Inc paid consideration for the acquisition and potentially a good chunk of goodwill, will their auditors ask the obvious question about whether the assets are impaired and - will they believe in management’s projections given what’s happened?
- In the absence of a licence, were the parents of the patients informed that a licence application was pending by either NSW Health or Smiles Inc?
- Will the vendor take this lying down or are we going to see a legal $&@# fight and see the details of the agreements incl the Smiles Call Option Price laid bare?
- Will we see if there is actually a secondary market for the JV interest in this practice and at what price?
- Who did the due diligence on this purchase? What was the process and what implications does this have for any other acquisitions?
(And on another note - did Smiles Inc have keyman cover for the NSW specialist that sadly passed
recently and if they didn’t did they consider this given that potentially this could be another impairment of goodwill?)
