Healthcare facility investors often confuse the difference between merger and acquisition, which can lead to conflicts of interest. A merger occurs when one facility consolidates with another, whereas an acquisition happens when one facility takes over another.
Healthcare facilities undertake these processes for various reasons, including financial benefits and industry advantages from operating as a larger entity. It’s crucial to manage mergers and acquisitions carefully to ensure a smooth transition and avoid emotional attachments to the facility.
In the healthcare industry, mergers and acquisitions can bring significant operational benefits. Many M&A deals in the UAE and KSA healthcare markets involve millions of dollars. Healthcare investors are interested in:
- International investors entering these markets by acquiring smaller existing healthcare facilities.
- Established players expanding their networks through acquisitions or mergers.
Recent examples of mergers and acquisitions in the UAE and KSA include:
- Multiple acquisitions by NMC Health (Fakih IVF, CosmeSurge, etc.).
- Mubadala Healthcare acquiring Amana Healthcare.
- Dallah Healthcare acquired a majority stake in Makkah Medical Centre.
- Dr. Sulaiman Al Habib Medical Group (HMG) issuing an IPO on the Saudi Stock Exchange (Tadawul).
- Amanat Holdings acquired Cambridge Medical and Rehabilitation Centre (CMRC).
- ADQ merged healthcare entities Rafed and Union with Dubai-based Pure Health.
- Yas Holding’s acquisition of Geltec Healthcare FZE.
- International Holding Company (IHC) acquiring a stake in Response Plus Medical Services (RPM).
The CBA team is ready to guide and assist you with your facility’s merger or acquisition process. We initiate and complete evaluations, negotiate with other facilities, and manage ownership transfers with DED, DOH, DHA, or MOH to ensure a smooth transition. To get started, simply fill out our request form, and our consultants will be in touch with you as soon as possible.