Financial Modelling & Funding Strategy for Medical Devices Manufacturing Business

Description of Project

The Client have been servicing the Medical Device Industry worldwide for more than two decades and is recognized globally as an industry leader in providing medical packaging solutions.

Since it’s inception in 1994 the group has grown steadily, undergoing expansion with manufacturing facilities located in Ireland, Poland and Malaysia.

Their ISO Class 8 cleanroom production facilities house all manufacturing capabilities, ensuring that they remain at the very highest levels of quality and service at all times.

Full Story

The Client specializes in flexible medical packaging and contract manufacturing services to meet the global demand of their multinational customers.

In view of it’s rapid growth in regional business portfolio, the Client wishes to establish a manufacturing facility in Malaysia as part of the Group expansion plan.

The targeted project site could house a 90,000 sq ft manufacturing facilities, depending on the design specifications. Due to the highly precision requirement on the machines and equipment to produce the medical devices, the capital expenditure for this expansion plan is estimated at a whopping amount of RM 25 million.

However, due to the high working capital requirement, the Client was unable to fully self-finance the expansion project. Hence, the Client would like to engage Consultant for a business planning and fund raising exercise.

Key Outcomes

Our engagement was to assist the Client in developing a sustainable business plan, raise the funding requirement of amount RM25 million and lastly, assist in the incentives application.

We begin by a stakeholder workshop to set the Vision of the expansion plan. This followed up a series of brainstorming workshop to build up a business plan that will help to achieve the Vision.

With this business plan as basis, we helped to design and develop a financial models that forecast the project financials. This help to simulate the actual financial requirement and it’s timing for better financial planning.

Next, we worked out a proper valuation of the business and used the critical information to prepare an investment teasers, funding memorandums and investment due diligence document packs for potential investors.

To ensure the transaction are smooth, we carried through transaction support and advisory services throughout the process of negotiation with financiers and investors.

Important Notice

*We take our clients’ confidentiality seriously. While we keep their names anonymous, the results are real.