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FREE BLOG The price of management

Bupa is the second global player to buy in the UK healthcare market this week – its deal for dental group Oasis follows Life Healthcare’s acquisition of Alliance Medical. There are two things that stand out about the deals: the Brexit factor and the premium paid for top-rated management teams.

Did Bupa pay too much for Oasis?

Bridgepoint-owned UK dentistry chain Oasis Dental Care has sold to Bupa for £835m – an estimated forward EV/EBITDA multiple of over 15x. We speak to a consultant close to the deal about Oasis’s valuation.

Bupa buys Oasis Healthcare

As predicted by Healthcare Europa last month, Bupa has bought Oasis Healthcare, the UK’s second largest independent dentistry chain, from Bridgepoint, the European private equity group. The transaction values the business at £835 million. Further consolidation looks likely.

Costa Rican hospital operator opens third facility in a year

Costa Rican hospital operator Hospital Metropolitano is investing up to US$1.2m to open a new facility in Santa Cruz, in Guanacaste, a province located in the North West of the country. The move is part of a US$10m expansion strategy, which saw the group doubling its network in 2016.

Mediclinic revenue up but EPS plummets after Al Noor purchase

The largest private hospital group in South Africa, Mediclinic, is feeling the effect of issuing shares to acquire Gulf hospital group Al Noor - and reported a drop of 26% in its underlying earnings per share (EPS) for the six months ending September 30.

Life buys Alliance

As forecast here, Life Healthcare has purchased Alliance Medical, the big Anglo-Italian imaging services platform with a limited presence in a further six countries. The enterprise value of between £760m and £800m values the company at around 13 times EBITDA of £60m in the year to March 2016. We analyse the deal, which is a bet on West European governments increasing the outsourcing of medical services.

Further tariff cuts in Poland making forward planning “difficult”

Stroke treatment is likely to become the latest area of medicine to suffer tariff reductions in Poland according to our information. Cuts of over 10%, following similar reductions to cardiology in the summer, are unlikely to have major impacts but symbolise the worsening business environment for private operators.

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