maconda assists China-based Modern Dental Europe in its acquisition of the Dutch company Permadental
Permadental is one of the largest suppliers of dental prosthodontic products or prostheses. The company provides its customers, which mainly consist of practicing dentists and dental clinics in Germany and the Netherlands, favorably-priced crowns, bridges and implants as well as telescopic crowns and offers tailor-made services in this area. Permadental has been purchasing many of these products from Modern Dental for years, one of the world's largest producers of dental prostheses and related products. Modern Dental's headquarters are located in Hong Kong and the company also has offices in Europe, North America, Australia and China. With the acquisition of Permadental, Modern Dental has moved closer to end customers.
The maconda team played a key role in this step by providing a comprehensive market due diligence. maconda had already supported Permadental's previous majority shareholder, a private equity house from Amsterdam, on its entry into the company with a comprehensive commercial due diligence, which incorporated dentists as industry experts.
For the current transaction, we analyzed the relevant market for dental prostheses, Permadental's positioning in the competitive landscape for traditional and more industrially-organized dental laboratories as well as general and sociodemographic market drivers. This included the co-payment models used by the health insurance companies, demographic changes and the up-and-coming CAD/CAM technology.
A further area of our analysis focused on the regulatory framework of the highly complex German healthcare system, which we have thoroughly examined over the course of various other healthcare projects (even if these focused on slightly different areas). We also carefully described the reimbursement practices for dental services and the contractual landscape at health insurance companies, associations of statutory health insurance dentists and panel dentists for our client and its Dutch banks.
At the same time, we evaluated possible legislative changes and their effects on the business. Finally, our client benefited from our comprehensive understanding of the target group of dentists and their purchasing behavior from our customer analysis.
It goes without saying that we would be more than happy to assist you as an experienced and reliable partner for your commercial due diligence needs (also for vendors), market and competition analyses as well as for your value enhancement, segment development and foreign expansion projects or in strategic and operative restructurings – in healthcare or in other industries.
Please get in touch should you require our expertise. We look forward to hearing from you!