SMH article discusses the pros and cons of the strategic update and reiterates the same view that the model looks sustainable now and a takeover looks attractive - (credit suisse are among the leaders in healthcare takeover advising, including the recent healthscope bid and their involvement in the recent restructure means that an answer wont be far away)
extract of news: "While no buyer would have touched Vision while the commitment of its doctors remained in doubt, the new pay structure could change all that.
Restore stability, and growth, and the group will be attractive to both private equity and listed healthcare companies. While any transaction is unlikely to attract the double digit EBIT multiples that were commonplace for healthcare deals before the financial crisis, even a seven-times multiple on $20 million of EBIT would mean that shareholders buying in at current depressed prices would double their money"
VGH Price at posting:
24.5¢ Sentiment: None Disclosure: Held
