• Industry tailwinds as Government and Private Health Insurers push for more community based (as opposed to  more expensive acute/hospital based) healthcare
• Large Govt funding initiatives- CDC (community directed care), NDIS
• Fragmented industry with few players of scale- ability to scale up and provide service to end clients who are themselves consolidating e.g. aged care industry
• Demographics- aging population. Large shortages of allied health to high-dependency aged care facilities
• Acquisition/roll out strategy to drive cross selling of services e.g. co-location of GPs with Physios/OT/podiatrists. Mobile podiatry business to service Homecare facilities, provision of further allied health services to current aged care podiatry clients
• Experienced Chairman and CEO with healthcare background and roll up/out business model
• Business vendors maintain equity in combined business to align interests
• Relatively low capex intensity, high cash generating business, modest P/E
• Ability to scale- 7.5-10% organic growth plus acquisitions

Primary Care/GPs: Primary Health Care, Sonic, 

Allied Health Care: Healthstrong, Generation Health, 

Homecare: APM, Uniting, Bupa

• Pay too much for acquisitions- potential to lead to write down of large intangible balance
• Continual large dilutive capital raises to fund acquisitions
• Integration risk of large number of acquisitions and ability to cost-out e.g. IT, Admin/finance, consumables 
• Increasing competition for businesses, particularly homecare from Private Equity and large competitors e.g. Medibank Private new Health Solutions division: Healthstrong
• Inability to break into Primary Care (GPs) in NSW to build community based model (lack of supply/price restrictions)
• Changes to Govt funding models- CDC, NDIS, medicare