Market Overview : 

• Growing market: Outlook for the dental/derma/cosmetic industry remains strong due to ageing populations, increased desire to preserve natural teeth, a rising demand for preventative care due to awareness of oral hygiene and increased focus on appearance. 

• Preference during COVID: There has been significant shift where the mass population prefers to visit smaller clinics / polyclinics for Dental / Cosmetic / Derma needs rather than large hospital due to fear of disease spread. 

• Sizeable consolidation opportunity: UAE market remains highly fragmented, consolidation is still in its early stage. 

• Chain advantages: Sizeable opportunity to acquire individual clinics and groups to form chains thereby creating multiples arbitrage, economies of scale, operational and procurement efficiencies. Chains also seek to provide a one-stop shop to patients with increased consistency, specialisations and technologies to provide broader services and increased quality of care, thus helping to attract higher exit multiple.

Target Overview : 

• Owned and managed by veteran doctor, the Target focuses on a buy and build strategy comprising of healthcare entities focusing on cosmetics, dermatology, dental, rehabilitation and multispecialty services. 

• The Target demonstrated a strong growth trajectory over the past five years, growing from 5 to 22 clinics in three years, whilst remaining profitable and debt-free, and significantly increased revenues and earnings during COVID-19. 

• It is expected that the Target will continue to benefit from the increase in average household income, healthcare spend per capita and demographic shifts in the UAE whilst it plans to grow within its catchment as well as in other markets like KSA.