Alan Brochstein

M&A Watch: 8 Medical Consumables Companies That Look Like Buyout Targets

For now, since so much of their sales are tied to new equipment, I don't include them in my universe of stocks with primarily consumables. Even if I did include it, though, it is trading at 10X EV/Sales, well above my 4X cut-off that I used. We'll see if they pull off another great quarter! When I was last buying it (early this year), it was 4X Ev/Sales...

M&A Watch: 8 Medical Consumables Companies That Look Like Buyout Targets

I was disappointed that COV, which had no relationship with ASPM (except that the CEO used to be on the Board of Directors) went in that direction, when I find SMTS to be a very similar company but that had performed much better in terms of growth and profitability. My discussion with the CFO left me comfortable that ASPM was actually trying to get itself sold - not that COV went out shopping. Our discussion led me to believe that SMTS might address the issue in Japan, as EW distributes only to the cardiac market. There were a couple of other issues that came up - bottom line, though, is that I was quite comfortable after the call that I shouldn't be upset that ASPM got the bid. Hopefully, COV is happy with the results and continues to put increased focus on patient safety through monitoring.

M&A Watch: 8 Medical Consumables Companies That Look Like Buyout Targets

You are welcome, and thanks for you kind words...