Tear Sheet: MED ParentCo L.P. Credit Metrics Expected To Remain Stable Amid Acquisitive Growth Strategy Restart

Our base-case forecast for MED ParentCo L.P. (MyEyeDr) projects S&P Global Ratings-adjusted EBITDA margin in the 21%-22% range over the next few years. MED's improved performance has been driven by the company?s efforts to reduce office labor and other expenses, which have resulted in a significant decrease in costs. In addition, the delayed payments obligations from past acquisitions have declined significantly, which we expect will be a tailwind to cash flow over the next few years. We believe the improvements in performance will allow MED to benefit from its relatively large scale compared with independent optometrists and enable the company to invest in further efficiencies and broaden its customer base. As a result, we project S&P Global Ratings-adjusted EBITDA of

...November 6, 2024 We believe improved margins and cash flow will enable the company to return to its acquisitive growth strategy in the near term. Our base-case forecast for MED ParentCo L.P. (MyEyeDr) projects S&P Global Ratings-adjusted EBITDA margin in the 21%-22% range over the next few years. MED's improved performance has been driven by the company's efforts to reduce office labor and other expenses, which have resulted in a significant decrease in costs. In addition, the delayed payments obligations from past acquisitions have declined significantly, which we expect will be a tailwind to cash flow over the next few years. We believe the improvements in performance will allow MED to benefit from its relatively large scale compared with independent optometrists and enable the company to invest in further efficiencies and broaden its customer base. As a result, we project S&P Global Ratings-adjusted EBITDA of 21%- 22% compared with 19.6% in 2023 and 12.5% in 2022. We expect the company...

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