Jun. 5 at 12:00 AM
$QIPT Forager offered
$3.10 per share. QIPT management will ask for
$4.00. Hopefully, they'll meet half-way.
$3.55 cash deal is best case scenario unless Kanen
Wealth decides they want to get involved as well, which is possible. A valid argument could then be made for
$5.00 per share which equates to 5X EBITDA.
In home medical equipment (HME) buyouts, EBITDA multiples typically range from 5x to 10x, but can vary significantly based on factors like size, product mix, and market conditions. Recent deals show a trend of higher multiples, with some transactions exceeding 10x EBITDA. Smaller deals may see multiples in the 4x to 6x range, while larger national players can command multiples closer to 8x to 12x.
Management doesn't have a leg to stand on; they may have to take the
$3.10 because they suck so bad. Forager knows that if QIPT doesn't take the offer, there will be a shareholder revolt and management will be voted out.
This will all play out BEFORE the end of the summer.
