A fertile area for investment
Fertility clinics have a lot going for them. The market is growing as women delay birth. It is private-friendly. In most markets access for public paid for treatment is difficult and there are signs that public hospitals are happy to retreat. And margins are high.
Our report shows that many groups are enjoying EBITDA margins of 30-40% and there are some big beasts out there. IVI, the largest European player had sales of €134m in 2014.
The downside is that there are a tonne of mom’n’pops to contend with. There are also large public and private hospital chains but we found that they typically lacked the dedication to compete with specialist clinics who have to stay open 24 hours a day, 365 days a year.
Healthcare tourism is both an opportunity and a threat for European players. Many Greek clinics say that 90% of their patients are foreigners. But there could be competition from the Far East. Bangalore has 70 IVF clinics alone. That is the same as the entire UK market!
We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.
