The offer isn’t the only thing that’s ludicrous about Gentivalink. The company’s executive compensation is hardly competitive, and its borrowings have increased more than eighty percent. While the federal reimbursement rate remains flat, gentiva’s management has divided $10 million in bonuses between its executives. What’s more, the company’s commitment to its employees is lacking, a fact that has prompted some to question the firm’s ethical standards.
gentiva’s consideration for the Offer
The amended partial Offer for Gentiva has left a substantial gap between the true value of Gentiva and the consideration offered. The proposed offer does not serve the interests of Gentiva stockholders. Instead, it is in the best interests of Kindred. A stock deal would consume Formation Capital’s resources, time, and effort. Besides, a stock deal would not involve the use of debt to fund the combination.
While there are no specific plans to raise capital in the near future, the company is regularly in touch with industry participants. It has no intention of discontinuing these discussions, which could jeopardize future negotiations. Accordingly, the Offer should be conditional on a positive outcome for Gentiva. The unnamed investment firm has the deepest pockets and the ability to raise debt. However, senior Gentiva leaders would prefer to be acquired by a new investor that shares their vision for the company. Such an investor would also have a significant advantage in the boardroom.
Among other factors, the board of directors of Gentiva also considered the advice of its financial and legal advisers in evaluating the Offer. While the board did not assign relative weight to each factor, it nonetheless considered all factors in order to determine whether the Offer would be beneficial for the company and its shareholders. The board’s recommendation for the Offer reflects the weight of these factors in the context of the Offer.
Kindred’s amended partial Offer
The recent approval of Kindred’s amended partial Offer to acquire Gentiva by the Company’s board of directors raises the possibility of the proposed acquisition. The proposal would have given Gentiva a combined value of $533 million, or $14 per share, and kindred would have acquired it for $7.00 per share in cash and Kindred common stock, totaling $1.6 billion. The proposed transaction represented a premium of 64 percent over the common stock price of Gentiva.
Kindred’s commitment to employees
As an employer, you should feel great about the company you work for. Kindred Healthcare has invested $39.5 million in expanding its corporate headquarters to accommodate up to 500 new employees over the next three years. The new building will be adjacent to the company’s current corporate headquarters and house an employee wellness clinic and training center. Construction should take about two years. While Kindred is known for its excellent benefits package, you might want to consider other companies as a potential career opportunity.
Founded in 1985, Kindred started as Vencor Inc. and renamed Kindred in 2001 after filing for bankruptcy. It has since grown to include 97 transitional care hospitals and five inpatient rehab hospitals as well as more than 2,200 outpatient rehab centers and 104 hospital-based acute rehab units. The company plans to expand its presence into the home health care market and will continue to pursue joint ventures with respected health systems.
To foster a culture of employee ownership, Kindred is committed to providing regular mandatory training to its employees. Kindred has implemented an AESP program to reward employees who meet company performance goals. The company has pledged to increase its share holder’s value by 70% between 2017 and 2021. Similarly, Kindred is supporting Women in Tech Sweden for the fourth year in a row. If you are considering a career at Kindred, read on to find out how you can benefit from their commitment to your future.
Kindred’s low raise wage practices
The startup’s seed round was led by Andreessen Horowitz and included Bessemer Venture Partners, Caffeinated Capital, and Elad Gil, along with Eric Wu. The company has several thousand members and hundreds of homes available in 20 major cities. The startup has grown organically and now employs about 10 people. The funding will be used for new hires and product expansion. But some employees have expressed their dismay over Kindred’s low raise wage practices.
Kindred’s focus on financial measures
In its latest sustainability report, Kindred Group plc introduces its long-term strategy and the company’s commitments to the environment, social and economic issues. The report contains facts, case studies and commitments within five key areas, such as responsible gaming, environmental stewardship and financial performance. It features progress made in each of these areas in the past year, as well as its new long-term ambitions. These new long-term goals include zero gross winnings revenue from harmful gambling by 2023.
The company’s Mountain Valley facility is showing favorable financial trends, including an increase in wage rates and total net revenue, as well as a decrease in the number of shares used to calculate EPS. This increase is primarily the result of an increase in the popularity of casino games and sports betting. As of September 2018, Kindred had a total of PS1.2 billion ($1.6 billion) in revenue. The company has also successfully achieved its financial strategic goals, with an average days’ accounts receivable of 28.2 days compared to a target of 40 days.
The merger between Kindred and LifePoint is expected to be beneficial for both companies. The combined company will have a nationwide network of community-based hospitals and providers, and the combined entity will have expertise in both long-term acute care and rehabilitation services. The combined company will also have a more streamlined and standardized care approach to patients, as well as investments in technology and other new markets. The companies also intend to focus on financial measures, including patient satisfaction, to increase revenue and to stay competitive in the marketplace.
Kindred’s focus on patient care
Two potential bidders are vying for Gentiva. Kindred and an unnamed investment firm. The Benzinga report suggests Kindred may have the advantage, since the investment firm is the owner of Genesis, a long-term care provider that is merging with Skilled Healthcare. This stock deal would eat up Formation Capital’s resources, but it doesn’t appear to be very complex. A stock for stock deal does not require debt to finance the combination, and it’s more like a merger than an acquisition.
The deal fees for Kindred will total $210 million. However, it’s not clear what the company’s financial goals are. Given the amount of leverage, Kindred could have to borrow as much as $300 million to $400 million. While the company has been a great company for the past few years, it is highly levered, and the debt it takes on will be folded into Kindred at Home. The company has used derivatives to “protect” itself, but those same “protections” turned into massive financial obligations during the financial crisis. Healthcare companies are mirrors of Wall Street, and are obsessed with financial language.
Because the nursing industry is still in its early stages, it’s important to note that the debt-to-EBITDA ratio of both companies is increasing. A higher interest rate is necessary to push this type of debt to investment grade. The merger of Kindred and Gentiva could increase the cost of healthcare. In the meantime, this will increase the profitability of Kindred. This is why the company has decided to merge with Gentiva.
