R1 RCM Inc. - RCM

RCM should just hit the private equity bid and be done with it

In February the company announced that private equity firm and 30% shareholder New Mountain Capital offered to acquire them for $13.75 a share. I offered up a few comments regarding the proposed transaction and thought the market was completely nuts if they thought another buyer was going to come forward. Shares have since retreated from those exuberant highs and have been trading below the buyout offer, though this morning they seem to be making another run.

Earlier this morning RCM announced Q1 2024 numbers that were nothing short of frightening, if you bothered at all to look a bit closer at the results.

Sure, the company reported revenues of $603.9M, up from $545.6M in the year-ago period, for something like a 10% rise. However,