Matria's Health a Matter of Contention

Based on its own disclosures, CorSolutions relied on just three customers for 44% of its revenue last year. Moreover, CorSolutions counted two of its major customers -- representing 22% of total revenue -- as company stockholders as well. Following Matria's all-cash offer for CorSolutions, however, those customers no longer have the same vested interested in the company.

Buyer Beware

Matria plans to sell two large divisions -- Facet Technologies and European-based Dia Real -- so that it can pay off some of the money it borrowed to purchase CorSolutions.

Yet buyers could be leery. Just last month, Matria found itself shelling out $10 million to settle allegations involving one of the last big companies it sold. That company, known as Diabetes Self Care, stood accused of billing Medicare for supplies that patients -- some of them deceased -- had never actually ordered.

Indeed, a former DSC insider claimed that 40% of the company's shipments were fraudulent in nature and that Petit was personally aware of the situation. Matria recently settled those claims, roughly two years after selling the company, without admitting any wrongdoing.

"You should understand that the allegations are simply that and should not be construed as fact," Petit stressed during a conference call last month. "We categorically deny any fraudulent activity."

Petit arranged that particular conference call in direct response to a negative report published by Off Wall Street.

During the call, Petit attempted to shoot down multiple concerns about Matria. Most important, perhaps, he attacked the notion that Matria had overpaid for CorSolutions to expand its presence in a commodity-like business with questionable value.

"I have been chasing this company since 2001," Petit told TheStreet.com in a follow-up interview last month. "I had a great deal of information before I ever saw the investment banking documents. ... It's a great acquisition."