SAN FRANCISCO, CALIFORNIA--(Marketwired - Oct. 22, 2013) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a profitable company focused on rolling-up annuity-based healthcare service companies in the US and Canada, today provided an update on its large and growing pipeline of potential acquisition targets. In preparation for these potential upcoming acquisitions, PHM also announced that its CEO, Bob Kusher, has decided to create a Board of Advisors to offer additional expertise about integrating acquisitions and increasing revenue through cross selling efforts based on their extensive knowledge of the field.
Acquisition Pipeline - 12 active acquisition candidates
PHM is addressing a large and fragmented market of small, profitable businesses providing healthcare services to chronically ill patients. PHM began to create the pipeline of potential acquisition targets in June 2013 in order to expand its service offerings as well as total patients serviced.
Offers Made to 4 Companies
As of the date of this announcement, PHM had made initial non-binding offers to acquire four separate businesses. The four acquisition targets have a combined trailing 12-month EBITDA of $4.5 million, each ranging from $750,000 to $1.9m in EBTIDA. PHM will perform additional due diligence on these companies before executing a Letter of Intent (LOI). Assuming these acquisition targets pass the due diligence process and a LOI is executed, PHM would next sign a binding purchase agreement and close the acquisitions. PHM expects that it can close all four acquisitions with its current balance sheet. Depending upon due diligence, and other intervening opportunities from its growing pipeline that may be presented, PHM may move forward more or less aggressively with these targets.
Initial Due Diligence with 8 Additional Companies
PHM has identified and is in active discussions with eight additional acquisition target companies that it has established as qualified and motivated to sell. These companies are in the initial due diligence process where PHM's M&A team is determining historical financial information and gathering general market intelligence about the target and their markets.
PHM continues to build its deal pipeline on a weekly basis through an assortment of finders and market participants.
"I am excited about our future acquisition prospects," said Mr. Bob Kusher, CEO of PHM. "I have decided to recruit an experienced board to advise me on integrating each acquisition, with a particular focus on maximizing revenue per patient served. I believe this cross sell strategy works because of our high-touch service model, we believe PHM is the best-positioned company in the market to provide more and more services for each of our newly acquired patients. With a seemingly unlimited amount of acquisition targets, I believe we have a model for significant profit growth in the near term."
PHM is a profitable and cash flow positive company servicing patients with chronic heart disease and will act as a platform for acquisitions. PHM is focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively working to identify and evaluate profitable, annuity-based companies to acquire their patient databases and technical expertise at favorable prices. PHM's post acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect.
Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations or acquisitions, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, availability of qualified senior management, risks from change in ownership or unfamiliarity with new markets, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.