Q & M Dental Group: caution advised.

Q & M Dental Group operates nearly 70 dental clinics in Singapore and a smaller number in China and Malaysia. Their annual revenue for 2015 came from Singapore (70%), China (23%) and Malaysia (6%).

Q & M’s growth has accelerated in recent years as they sought to increase their market share by acquiring established dental practices. The purchases were funded with a mix of cash and stock. The purchase agreements stipulate that the existing dentists continue to run the practice and generate profits.

Nevertheless, the additional debt bought on by the acquisition binge should give investors pause.

growth fueled by debt never has a happy ending.

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 28 November 2016

Q & M’s strategy of growth through acquisitions is flattering the headline numbers while loading the balance sheet with debt.

2015 was a busy year for Q & M! They acquired a string of clinics in Singapore for close to $60 million of which $34 million was satisfied in cash while the remaining $26 million was in new shares. Following these transactions, Debt/Equity Ratio rose to 76% while intangible assets doubled to $76 million and constituted a significant 30% of the company’s $ 232 million in assets.

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28 September 2016

Q & M’s results for 9M16 show growth in profits falling behind revenue. While that in itself is not conclusive, growth fueled by debt never has a happy ending.


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    • 2015 was a busy year for Q & M! They acquired a string of clinics in Singapore for close to $60 million of which $34 million was satisfied in cash while the remaining $26 million was in new shares. Following these transactions, Debt/Equity Ratio rose to 76% while intangible assets doubled to $76 million and constituted a significant 30% of the company’s $ 232 million in assets.
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