Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Team Health: Bid Is Gone, But Demand For Physician Staffing Assets Only Getting Better

Even though Team Health Holdings (TMH) stock is down 35-40% over the past six months, the concerns around the name are hardly related to the core operations, but more related to new acquisitions and rejected acquisition offers, both to the investor's discomfort, especially short-term focused investors. But this may be a good time to take a closer look, since fundamentals of the broader physician staffing space and the company look set to benefit from consolidation in the space and the integration of the recently acquired IPC Healthcare.

Besides the market and usual challenges associated with the integration of a new acquisition, investors are concerned about the high leverage, rightfully so considering the doubling of net debt/ adjusted EBITDA

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