Valuation & due diligence report for a polyclinic in KSA based on market assessment, financial assessment and analysis

Client / Industry Brief

    The healthcare sector in KSA has evolved substantially over the years, especially, due to increasing demand drivers such as aging population, unhealthy eating, smoking and sedentary lifestyle has become a prominent part of the KSA demography.
    The client is interested in acquiring a polyclinic at an estimate acquisition of 10x of the net profit of 2018, through focusing on the key revenue drivers, profitability drivers and potential for future improvement.

Project Objectives

    Validation of inputs received from the management, finance and current operation team based on the HIS system.
    Developing the required context and gathering management inputs from internal stakeholders and promoters on the current operations, challenges and future vision for the poly clinic.
    Identify the gaps in the current operations and categorize them into specific ‘gap themes’ of varying priorities based on their impact on the shareholder value. Also, identify KPIs that can be used to track the implementation of the recommended changes/initiatives.
    Draw inferences from financial analysis and identify key value drivers to plot the current valuation for the polyclinic which can be used as a reference for value-unlocking initiatives.

Project Methodology

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Project Benefits

    Based on analysis conducted, EmPact defined the key success factors for the proposed venture as follows: