Project Overview

Our client was a General Partner (GP) that had invested in a leading private general hospital in the centre of Athens which was a key player in the Greek healthcare industry. They focused on patient-experience and providing complete care services that go beyond the clinic. They believed in investing to create competencies and improve the healthcare standards in the community. They were one of the few hospitals in the region with a dedicated and well-funded Endoscopy unit, urology unit and diabetes unit. The company had grown exponentially over the last two decades, in terms of experience, human resources and industry influence. The hospital had recently changed their management and our client was now looking at a Management Buyout of the business and to raise additional equity from their fund’s investors to fund the company’s working capital deficit.

They sought our assistance in order to value the business and structure the buyout.

Key Challenges

  • The company took a hit in 2013 because of a rebate & claw back provision in place, but had grown steadily and was back on track in terms of growth and revenue
  • Post 2013, although the net debt remained fairly stable, the company was facing a working capital deficit
  • Projection of future growth and performance based on the new investment and ROI calculations

How We Helped

  • We helped structure the deal from the GP and management team’s perspective. We proposed an as-is buyout of the business for €7m with an
    additional equity injection of €5m.
  • We also developed a forecasted financial model for the hospital post the additional cash injection and under the influence of the new and superior management team
  • Helped develop a lean cost structure building further on the restructuring that took place in 2017.

Outcome

€7m

Management buyout

€5m

New Cash Injected

10%

GP & Management Contribution

Start Your Journey With Us

Book Consultation