Morgan Keegan Urges MedAssets Management To Take The Company Private

According to Morgan Keegan, MedAssets

should strongly consider taking the company private and simultaneously selling the RCM business. Morgan Keegan reported that that the 34% decline on Friday demonstrates a lack of confidence in the current strategy, as well as an unwillingness of the market to recognize that RCM deserves a significantly higher valuation than SM. “Applying an EV/EBITDA multiple of 10x to the SM business and 16x to the RCM business, we believe that $24 of shareholder value could be created immediately through the transaction proposed above. MDAS could pursue the synergies created by combining the original SM business with Broadlane, but as a private company.” MedAssets closed yesterday at $14.06.