A majority stake in Family Medical Practice (FMP), a Vietnam-based healthcare service provider, is said to be on sale in a process run by the advisory firm PwC, three informed sources told DealStreetAsia.
The process has been on-going and the sell-side advisors have been approaching various investors directly as these parties do not conduct a public auction, said one of the sources mentioned above. Potential buyers for the clinic chain could include general hospital operators or financial institutions, the source added.
However, Sarah Dang, head of marketing and business development, denied the development. “The truth is actually the opposite,” she said in an email. “We get almost weekly inquiries from investors if we are willing to sell [a]s they see potential in our business.”
“This year we have opened a new clinic in D7 and we are currently in the progress of becoming the pioneer in the high-tech bio-molecular industry.”
FMP’s EBITDA stood at $3 million in 2019 and it may ask for around 15 times EBITDA valuation during the sale. The pricing is based on the valuation of hospital chain companies, one of the sources said.
Founded in 1994, and opened in 1995, FMP is majority-owned by Rafi Kot, an Israeli doctor, who also serves as the company’s CEO. Meanwhile, some minority stake is believed to be owned by doctors who practice in FMP clinics.
“Kot may want to sell because he’s in his 60s and may want to have a professional management succeed him,” one of the sources added.
According to FMP’s website, Kot is a specialist in general practice and leads a growing team of dedicated physicians specialising in emergency & evacuation medicine, general practice, paediatrics, and other medical fields. Kot is also the medical coordinator for Vietnam Airlines’ foreign-employed crews.
FMP started operations with a diverse multinational team of physicians from around the world including Israel, Vietnam, the US, Canada, Japan, France, Sweden, Venezuela, and the Philippines, according to the company’s website.
The company’s services spread across general practice, paediatric care, internal medicine, obstetrics, dermatology, ophthalmology, ENT, dentistry, cardiology, vaccinations, physiotherapy, orthopedics, gynaecology, endoscopy, and emergency care.
Besides FMP, several of Vietnam’s healthcare services have been in the market for sale such as TMMC Healthcare that was said to seek around $100 million in valuation for a 100 per cent stake, as reported by DealStreetAsia in January 2020.
FV Hospital is also seeking new investors as the shareholder Quadria Capital might plan an exit.
Meanwhile, in August 2020, PE firm VinaCapital announced that it led a consortium of investors to acquire a “significant minority stake”, and a board seat, in Hanoi-based Thu Cuc International General Hospital (TCI) for $26.7 million, through the Vietnam Opportunity Fund (VOF).
Editor’s Note: The story has been updated to incorporate the comments of FMP executive.