American CareSource Holdings, Inc. (NASDAQ: GNOW), operating under the tradename GoNow Doctors, owns and manages a growing chain of 11 urgent care centers, and an ancillary services network that the Company is seeking to sell. Well-positioned in an expansive, fragmented, and growing industry, GNOW plans to expand to 51 urgent centers by the end of 2017.

GNOW, upon the sale of its legacy network business, will become the only publicly-traded pure-play urgent care company, and is projecting over $20 million in urgent care revenue in 2016. The Company expects to add 10-15 centers in 2016 through acquisitions and new center developments, with each center estimated to generate an average of $1.2 million in annual revenue on a run-rate basis. GNOW expects strong ROIs on new clinic expansion (over 500%) and expects to be able to acquire new centers at low EBITDA multiples (4x-5x), due to the fragmented nature of the urgent care market. GNOW is well-positioned to leverage its existing corporate infrastructure and synergies to rapidly expand without significant cost increases. The Company expects to reach breakeven on a run-rate basis by the end of 2016. GNOW trades at less than 0.5x sales, while its peers trade at an average price-to-sales ratio of 2.9x. GNOW represents a compelling opportunity to accumulate shares near the beginning of an aggressive growth strategy and at a low valuation.

• GNOW and Harbert Realty Services partner to develop 10 new GoNow doctor urgent care centers over the next 12 months
  • Harbert will finance all upfront capex for GNOW in building and opening new urgent care centers
  • Each urgent care center generates an enterprise value of $3.2 million, representing ROI of over 500% per location


• Expansive, fragmented, and growing industry
  • An estimated 9,000 urgent care centers in U.S. in 2013
  • 71% of 2012 operators owned 1-2 centers
  • Acquisition targets of small operators at 4x-5x EBITA multiples
  • Recent large operator purchases at multiples between 10x-15x EBITA


• Aggressive growth strategy
  • Plan to expand to 51 centers by end of 2017, up from 11 centers today
  • Combination of new development and acquisitions of existing facilities



• Experienced board and management team
  • John Pappajohn – Billionaire venture capitalist and founder of Caremark, serves as Chairman of the Board
  • Adam Winger – CEO is a CPA and attorney with extensive experience advising urgent care facilities; contributing author to Textbook of urgent care management

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