The client is a start-up healthcare company focusing on the post-acute care market in Malaysia. It envisions to make available quality, affordable & patient centric post-acute care, extended rehabilitation care, aged & long-term care in all major cities in Malaysia, follow by other countries in the ASEAN region.
FULL STORY
To achieve the founder’s vision of bringing the quality & affordable services to population throughout Malaysia, the company has planned to set-up a large number of healthcare facilities along with the necessary equipment and qualified manpower.
As a start-up with small customer-base and limited funding, the client faced various challenges to expand its business. With this in mind, the client decided to map out a business strategy that can guide the expansion process and raise fund to finance for the expansion plan.
Working with one of the largest financial advisory firms in Malaysia, we were being appointed to devise a 5 years business plan, an Information Memorandum (IM) and assist in the equity raising negotiation with interested investors.
KEY OUTCOMES
We began the study by conducting a thorough review of the healthcare industry at global, regional, and national levels to ascertain the current state of healthcare industry, particularly the emerging market trends, consumer behavioural shifts, as well as the market size of various healthcare services, focusing on the secondary healthcare segments. This gave us a clear overview of market intelligent that would form the baseline to formulate the business plan.
This was then followed by a detailed value chain analysis on the secondary healthcare industry in Malaysia to ascertain the major challenges which indicated the cause for change and market opportunities in the industry. Further analysis was being carried out to assess the potential market demand and market size by various sub-segment, in particular the post-acute care and retirement village at urban areas.
The team had to dwell deeper to study the affordability level of these selected sub-segments at a national level, to ascertain a baseline understanding on the current charging mechanism, cost structure and indicative profit margin as a basis for the pricing strategy in subsequent stage of the business planning.
With the baseline analysis in place, we have devised a conceptual business model with the healthcare specialist on-board, targeting the patients who require constant care but do not need to be hospitalised and cannot be cared for at home. A design thinking workshop was held to formulate the initial Business Model Canvas with the value proposition, key partners, revenue streams and cost structure.
Under a separate work stream, our team was also looking at the potential project site by assessing the geographical opportunities across all major cities within Malaysia. This assessment looked at parameters such as population density, age profile of resident, healthcare and wellness spending pattern, competition, availability of transportation infrastructure, and lastly the availability of suitable buildings for service delivery. We devised a site evaluation matrix to determine the suitable land for the establishment of a services outlet.
Supported by our engineering and quantity surveying partner, we have also developed a 30-year financial model which detailed out all CAPEX and OPEX items for the business. This provided a clear indication of the financial profile and profitability of the business, which gave a clear overview on the financing requirement to sustain the business.
With the business plan ready, the team developed a valuation model to estimate the Enterprise Value (EV) of the business for investment purposes. We also helped to prepare the Information Memorandum and Investor Teasers deck. Working alongside the client, we assisted in a series of negotiations with potential investors to structure a deal which is favourable to the client.
By the end of the study, we outlined a time-phased implementation plan which contained the key milestones and activities on the technical and financial aspects to execute this Secondary Healthcare business plan.
