Jump to content

AIQ - Alliance Healthcare


Packer16

Recommended Posts

  • 3 weeks later...
  • Replies 398
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Posted Images

http://finance.yahoo.com/news/alliance-healthcare-posts-3q-profit-090257224.html

NEWPORT BEACH, Calif. (AP) _ Alliance HealthCare Services Inc. (AIQ) on Thursday reported third-quarter profit of $1.5 million.

On a per-share basis, the Newport Beach, California-based company said it had profit of 12 cents. Earnings, adjusted for non-recurring costs, came to 33 cents per share.

The radiology and radiation therapy service provider posted revenue of $127.1 million in the period.

Alliance HealthCare expects full-year revenue in the range of $505 million to $535 million.

Alliance HealthCare shares have decreased 5 percent since the beginning of the year. The stock has fallen slightly more than 4 percent in the last 12 months.

Link to comment
Share on other sites

  • 1 month later...
  • 3 months later...

http://finance.yahoo.com/news/alliance-healthcare-services-enters-definitive-125500991.html

Alliance HealthCare Services, Inc. (AIQ) (the “Company,” “Alliance,” “we” or “our”), a leading national provider of outsourced radiology, oncology and interventional services, announced today that it has signed a definitive merger agreement with Tahoe Investment Group Co., Ltd. (“Tahoe”), formerly known as Fujian Thai Hot Investment Co., Ltd., THAIHOT Investment Company Limited (“THAIHOT”), THAIHOT Investment Company US Limited and Alliance HealthCare Services Merger Sub Limited (each an indirect wholly owned subsidiary of Tahoe, and, together with Tahoe, the “Tahoe Group”), pursuant to which the Tahoe Group will acquire all of the outstanding common stock of Alliance that is not beneficially owned by the Tahoe Group or owned by Alliance as treasury stock, for US $13.25 per share in cash, or a total payment of approximately US $75 million to equity holders of Alliance other than the Tahoe Group.
Link to comment
Share on other sites

Lol, I just started doing dd on this yesterday, was one of the few ideas I've found lately I thought was worth putting some time into.  :-\

 

Wasn't it pretty obvious ahead of time that second offer would be put forth and raised? Thinking out loud here, although I can't enumerate examples from personal experience, if a company is undervalued at least somewhat, and an acquirer makes a below market offer, isn't that just a way to set the bar low for a revised offer? If it's true that companies rarely sell for below market, at recent lows, it seems this should be the case. If they didn't already own greater than 50% of shares, It's quite unlikely this offer would be accepted, adding to the thesis. Trying to understand if this should have been seen an a high probability outcome ahead of time. At 10/share the company was anywhere from somewhat to very undervalued depending on future margins, which look to be turning up according to my inadequate dd. You could have had downside protection buying at a low value with a high probability of a quick 20% plus.

Link to comment
Share on other sites

Guest Schwab711

What is your valuation? 6.4x EV/EBITDA is identical to Thai Hot's prior offer at $18.50/share in 2015.

 

Going multiple for low middle market is roughly 7x. AIQ is highly levered and in a low margin (commodity) business, so it should probably get a lower multiple.

 

It also doesn't look like they will be profitable for common shareholders in 2017 after the recent rate hikes. 2017 FCF will probably be around $25m-$30m with current CapEx (5x to 6x declining FCF, that will further decline with each additional rate hike). Their equipment seems to be relatively old so current CapEx might be a bit low going forward. I'd also think a highly levered company would deserve a lower multiple (4.4x).

Link to comment
Share on other sites

I get closer to 6.0x based upon 2016 actual & 5.7x EBITDA on 2017 projections, removing the MI net income.  So it is really cheaper than the ThiaHot PP. If you apply a 6.4x multiple to 2016 actual you get a stock price 60% higher than the offer.

 

Packer

Link to comment
Share on other sites

  • 2 months later...
  • 1 month later...

Did anyone else get a call from an IR firm trying to get you to vote for the deal (paid for by AIQ)?  I wonder if they have enough votes to pass.  I told them no & am going to request appraisal rights.

 

Packer

 

Hey Packer,

 

No position in AIQ, but just curious what you expect it to cost you to pursue appraisal rights?

 

Thanks

Link to comment
Share on other sites

I have a position but did not receive a call, yet. I will also tell them no to the deal. Please input any updates and thoughts here.

Ditto.

 

Ditto

 

In hindsight we(I) should have sold when OAK sold.

 

At the time it appeared cheap. I should have figured that OAK would not have sold at $18 if it was worth much more...but I didn't.

 

The current bid looks too low, but I am biased.

 

I would be interested in what you guys feel may happen here.

 

Link to comment
Share on other sites

I have a position but did not receive a call, yet. I will also tell them no to the deal. Please input any updates and thoughts here.

Ditto.

 

Ditto

 

In hindsight we(I) should have sold when OAK sold.

 

At the time it appeared cheap. I should have figured that OAK would not have sold at $18 if it was worth much more...but I didn't.

 

The current bid looks too low, but I am biased.

 

I would be interested in what you guys feel may happen here.

 

After OAK sold the stock dropped below the current price as far as I remember?

I sold a while back at $13.20... I do not have confidence minority shareholders will get a fair deal and do not have the resources (or allocation) to take legal actions.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...