Case Study: Private Healthcare | Business Strategy, Planning and Budgeting, Raising Funds

Background:

From scratch start-up private healthcare provider - Sorrel owned set this up with a clinician, initially working evenings and weekends alongside other roles. The opportunity arose to acquire a competitor after 8 months of trading.

Challenges:

Systems in the acquired business were paper-based with staff that weren’t IT literate. All staff and processes would need integrating with our existing business culture and processes.

The rented building they occupied was not in keeping with how we wanted to present a business, however there was an opportunity to acquire the building. A funding package was required to purchase the business and building.

Approach:

Due diligence of the business was undertaken, which allowed existing people, processes, data and patients to be assessed. Plans were then made for integration of our existing IT systems into the new business.

Assessment of the building and work required to renovate to a suitable standard, quotes were gathered. Purchase price of the building was negotiated.

All of the above was compiled into an acquisition implementation project plan and an investment pack and business plan to be used to seek funding.

Outcomes:

The funding package was secured using a combination of existing business funds, a bank loan, grant funding from the local council and a private investment from a group of business angels.

Monthly reporting was required so management accounts that included actuals and rolling forecasts were developed. Year end accounts were also completed within 15 days. The relationship with the business angels was nurtured by Sorrel and as a result was always strong.

IT systems and processes were fully integrated for the day-to-day operations and staff were recruited and trained in these. The culture was developed over time as the business grew rapidly over the next two years.

The building was purchased, so the clinic was moved into a rented unit five doors away for six months while the refurbishment was undertaken (managed in-house). It was then moved back into the new building with a launch event to attract PR and give marketing opportunities.