Analysts hail Q&M's China acquisition but flag execution risks

Singapore

Q&M Dental Group's latest acquisition in China may open doors to more deals in the vast market, but this comes amid heightened M&A execution risks, analysts said in two separate reports this week.

The group on Tuesday said it plans to acquire a 47.14 per cent stake in Shenzhen New Perfect Dental Research (SZNP) for 66 million yuan (S$13.8 million) in cash. SZNP operates 16 laboratories that make customised dental prostheses in 15 China cities and has about 650 lab technicians, said Maybank-Kim Eng Research in a report this week.