NVL 0.00% $3.67 national veterinary care ltd

UVG Acquisition

  1. 2,976 Posts.
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    NVL - I doubled the half year pro forma EBIT and added the EBIT from acquisitions announced since
    Jan 1, 2016. EBIT is around $8 - $8.5 range . Market Cap is $44M so trading on around 5 times EBIT.
    Latest acquisition of vets buying group UVG very strategic giving them access to data on 250
    Vet clinics buying data plus recurring revenue through monthly subscriptions paid by vet clinics. Over $1M
    in EBIT on 50% margins of revenue before any synergies. Bought on 5 times EBIT. As more clinics are purchased UVG will wield greater bargaining power with suppliers hence attracting more vets clinics to join the
    program . They also offer continuous improvements education and with CVS (Complete Management Systems ) they have a complete offer for clinics now. The upside is they will build relationships with 250 clinics, have an insight into their businesses and will be the first port of call when they come to sell. Micro Equities is long on the stock and have added since the IPO.
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