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Get ready for the unfolding of a growth story from Singapore-listed Q&M Dental Group. |
To put a ring on it, scooping up 100% of the Australian venture (Experteeth Group) means A$64.6 million in cold hard cash, while snagging a 51% stake in the Thailand deal (Deezy Q&M Dental) comes with a cool THB 700 million (S$27 million) cash price tag.
Founded by Dr Nanthisak Piyanantisak and Dr Thunyaporn Pongkajornkitjakarn, Deezy has 33 dental clinics across Bangkok and northeastern Thailand, supported by over 411 dentists.
Deezy has given a six-year, THB 1.25 billion profit guarantee while Experteeth, an eight-year, A$112.6 million profit guarantee.
| Expert moves in Australia |
The Australian expansion will be spearheaded by Experteeth Dental co-founders Dr Hong Chang and Dr Jeffrey Gao.
Q&M will inject an additional A$30.36 million of equity into the Experteeth Group to repay financing facilities and directly fund further expansion.
| Bigger platform for impact |
 "I know you're going to ask me why 15 years, right? I see 15 years, 25 years, 35 years of career ahead of me. And I need a partner, right? Now, through Q&M's platform, I can have a bigger platform to leverage, to make a significant impact on the industry."-- Dr Hong Chang Co-Founding Partner, Experteeth Dental |
Experteeth has come a long way, growing from two small clinics in Sydney into a nationwide network of 40 clinics. Teaming up with Q&M gives it the resources to take the business even further.
Australia is a good fit for Q&M because its legal, operational and financial frameworks are similar to Singapore's.
There's also Australia's healthcare system. Dr. Hong highlighted that over 55% of Australian families have government-subsidized health insurance that encourages them to "go to see your dentist every six months".
As a result, over 80% of Experteeth's revenue is highly stable "bread and butter dentistry".
The partnership also creates opportunities to work smarter and share resources. Together, Q&M and Experteeth will have more than 1,000 dentists and 1,100 dental assistants across the group.
One initiative is combining Singapore's Q&M College with Experteeth's intensive "dental boot camp" to develop a cross-border diploma programme.
At the same time, Q&M plans to roll out its proprietary dental AI platform across its overseas clinics.
| Proprietary AI |
Dr Raymond Ang, Chief Operating Officer, Q&M Dental.
Dr. Ang noted that the company's proprietary dental AI can "diagnose all oral conditions" on X-rays with an accuracy of about 80% and is officially cleared as a medical device in seven countries.
The ultimate goal is a seamless, cross-border patient management system where "a patient can transit seamlessly from Singapore Q&M to Malaysia Q&M to Thailand and Australia... your records will transition seamlessly".
Furthermore, the scale of the expanded group guarantees that "the procurement power of such a block is unprecedented," allowing them to negotiate the best possible prices from international dental suppliers.
Despite these expansion moves, Q&M maintains a prudent financial posture.
The acquisitions are being funded by internal resources, with the company's current S$112 million cashpile alongside an existing MTN loan of over S$130 million.
The management team is confident in the group's cash flow.
What does the expansion plan in Australia look like for the next two years? Will it rely more on acquiring new clinics or organic growth? |
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