- On June 7th, 1Life Healthcare (ONEM) announced its merger with Iora Health.
- Even if ONEM achieves growth through its merger with Iora, it may need to sacrifice quite a bit in terms of profitability.
- The “Attractive” Iora’s PSR valuation suggested by ONEM feels “Unattractive” when considering the vast difference in P&L and membership scale/growth of the two companies.
- I believe while the S-4 provides a risk factor that includes a generic laundry list of integration problems, there is no disclosure of how the management will solve the problems.
- A more reasonable valuation of the company being merged and clearer PMI (post-merger integration) guidelines to stockholders will alleviate many of our concerns.
For further details see:
1Life Healthcare: Why We Are Against The Merger