Valuation & Due Diligence for a Polyclinic

Client / Industry Brief

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.
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.

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.
Validation of inputs received from the management, finance and current operation team based on the HIS system.
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.
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.

Based on analysis conducted, EmPact defined the key success factors for the proposed venture as follows:
In-depth financial analysis to come up with a valuation for the business.
Develop specific ‘gap themes’ and recommend suitable initiatives/actions targeting each gap theme
Developed to track and monitor progress of the revenue drivers, profitability drivers on a periodic basis and reprioritizing of the services offered.