
Why investors may find Singapore's specialist clinic chains risky
As it turns out, asset-light-model is still a new concept.
There is a new thing going on in Singapore healthcare industry and investors are finding it riskier.
According to a report from Maybank Kim Eng, specialist clinic chains that depend highly on the number of doctors for growth is relatively a new concept, and investors believe the business is riskier due to three reasons.
For one, there is the revenue concentration risks from a few doctors, especially for smaller groups. More so, there could be a high dependency on m&A for growth which poses higher execution and integration risks.
Finally, there is the dependency on the share price for the cheap financing of M&A.