Description of Project
The client is a healthcare concession company who has secured a concession from the Ministry of Health. The concession company is required to develop a specialist hospital and undertake asset management services for the hospital based on a Private Finance Initiative (PFI).
Full Story
Under the concession arrangement, the client is required to finance, construct & maintain the hospital and all related facilities in return for consideration from the MoH. The project site of the hospital is strategically located in the city center of a capital city. This has given it the perfect connectivity and accessibility via multiple transit systems. The construction and development of the hospital were completed and handed over to the MoH recently.
In order to support the Client’s other investment projects, the Client is contemplating the disposal of the concession company to acquire immediate cash flow. In order to maximize the gains from disposal of the concession company, the Client is in need of a divestment & transaction advisory service that will help to ensure the viability of the deal.
Key Outcomes
Working with our senior advisor in corporate restructuring, we were tasked to provide advisory services on the company valuation, divestment strategy, preparation of Information Memorandum (IM) and assist in the deal negotiation with interested investors.
To ensure a proper valuation of the business, the team developed a full-fledge 30 years financial model that simulated the financial performance.
With the valuation ready, the team begin to explore the divestment strategies that are suitable for this particular transaction by looking at the revenue potential and cost profile.
We also help to prepare the Information Memorandum, identify potential investors and assist in the investor negotiations to structure a deal that is financially viable to the client.
Important Notice
*We take our clients’ confidentiality seriously. While we keep their names anonymous, the results are real.
