Greencross Limited (ASX:GXL) 26% in 4 days!
There are high barriers to entry in this space - specialist and emergency vet centres stand to benefit from the increasing technological advances that have occurred in veterinary medicine which require expensive specialised equipment and facilities....
The number of registered Veterinarians have grown by 73% over the decade with numbers to exceed 11,000 in FY 2013!
that's meant to read 'greater than' 100 by now
and up tenfold in three years. incredible. and to think the have only rolled up ~5% of the domestic vet clinic market, with the remaining 95% wide open for consolidation.
The increasing oversupply of vets will accelerate the push for consolidation. Greencross' weakness is there are low barriers for entry, so competitors are likely to appear. Maybe that is why they are acquiring clinics so aggressively. They must be >100 by now?
I know it only too well - I am a qualified Vet with a decade in the industry before I retrained in finance. I meant the roll-up process has lower barriers to entry. A smart business operator with good networks in the industry, and access to capital could in theory create some competition. The US and UK both have several competing Vet corporate roll-up groups.
...must be >100 by now?