Growth potential in diagnostics & outpatient services
Detailed a compelling growth story for a European healthcare provider, leading a minority investor to acquire the company.
We examined expansion opportunities within and beyond the company’s existing footprint of geographies, services, and modalities. This included assessing the impact of disruptive technologies, and evaluating the best routes to realizing the opportunities, whether organically or through M&A and partnerships. The investor acquired the company outright on the strength of our findings, and the growth plan was implemented, driving significant value.
Our client held a minority interest in a European leader in advanced diagnostics and outpatient services. With a view to buying the company outright, they sought to know whether there was a robust set of growth options for the business that would deliver substantial value creation.
Our assessment would focus on three areas: opportunities for growth within the company’s existing geographic and service footprint, international expansion, and new service areas/modalities in the home markets.
For each market we evaluated the growth in diagnostic services, the competitive situation, and specifics such as treatment referral patterns, the payor regime, and public-private partnerships. We also reviewed potential disruptive forces and how they might affect the firm’s businesses in such areas as teleradiology and gamma ray technology.
We prioritised opportunities by profit potential and ease of capture, and assessed how best to realise them, whether through partnerships, JVs, acquisitions, or organically. The insights were drawn together into a compelling growth plan that would deliver a E200m increase in EBITDA over a 5-year period.
The sizeable opportunity both internationally and in new service areas made a compelling case for our client to buy the firm outright. They did so, and over the next few years the growth strategy was implemented, delivering significant value to the investor.