After noting the main demand patterns and consumer behaviours in the UK dental market, the Interview took a closer look at IDH Group. The company, which offers NHS and private services, has historically been “very poor at delivering on its NHS contract”, the expert said. However, the fact it’s the only national UK operator is appealing to a potential buyer.
The expert was asked what multiple of EBITDA a business such as Mydentist could fetch in today’s market. A small regional group would be between eight and 10; midsize between 10 and 12; and a large group 12-14, he said.
The factors that would enable IDH Group to sell at a premium relative to other players were also explored, with its aforementioned national coverage topping the list. The expert was pessimistic about the value of the company’s Dental Directory, which he believes should be sold separately. “They lost 50% of their revenue, or something, overnight, as soon as they bought Dental Directory, because a whole load of dentists said, ‘I’m not getting my supplies from somebody that’s owned by the competition,’ and you can see the logic for that argument.”
The Interview ended with a focus on what KPIs investors should consider when evaluating Mydentist, IDH Group or the broader UK dental market over the next year.
Other topics on the agenda were the consumerisation of dentistry and healthcare, changes to UDA (Unit of Dental Activity) contracts and potential buyers of IDH Group.
To access all the human insights in Third Bridge Forum’s IDH Group (Mydentist) – pre-sale business review Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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