Fundraising Advisory Mandate for a Private Healthcare Establishment
Fundraising advisory supporting the entry of an institutional investor into a private healthcare establishment
Description of the mandate: M&A advisory for the fundraising of a Swiss private healthcare establishment
The engagement focused on the opening of the capital of a private healthcare establishment in French-speaking Switzerland to an institutional investor. The fundraising advisory aimed to support historical shareholders in the structuring and negotiation of the introduction of a new minority investor, intended to finance the creation of a medicalised platform and support the growth of activities.
The transaction relied on a prior independent valuation, having valued the establishment in a range of CHF 10-15M, consistent with the standards of the Swiss private healthcare market.
Key challenges: balancing investor attractiveness and preservation of medical control
The main challenges lay in:
- the definition of a balanced participation structure and the preservation of operational control by the medical directorate;
- the attractiveness of the project for the incoming investor (profitability, governance, exit);
- the modelling of the post-transactional capital and the impact of the raise on governance;
- the preparation of transactional documents (teaser, IM, investment protocol);
- coordination with legal and tax advisers.
Approach and outcomes: structured process and finalisation at CHF 10-15M valuation
The team supported shareholders and management throughout the process:
- identification of potential investors (healthcare institutionals, family offices, growth funds);
- organisation of preliminary discussions and roadshows;
- preparation of the data room and coordination of due diligence;
- negotiation of investment terms and shareholders' agreement (governance, exits, anti-dilution);
- final structuring of the transaction.
The work enabled the finalisation of the entry of an institutional investor based on a valuation range of CHF 10-15M, while preserving medical governance and project identity. The transaction financed the creation of the new medicalised platform, strengthening reception capacity and complementarity of services offered.
Illustrative example: numerical application to a minority raise in private healthcare
For illustrative purposes only — unrelated to the actual data of the mandate — a fundraising in an establishment valued pre-money at CHF 12M (high end of the CHF 10-15M range), with an investor ticket of CHF 3-5M, would lead to a post-money valuation of CHF 15-17M and an investor stake of 20-30%. The shareholders' agreement typically structures (i) a board seat, (ii) veto rights on structuring decisions, (iii) a 1x non-participating liquidation preference, (iv) tag-along/drag-along clauses, (v) weighted-average anti-dilution.
Summary: 7-month mandate, institutional raise, medicalised platform financed
M&A fundraising mandate delivered over 7 months for a Swiss private healthcare establishment. Structured process: investor identification, data room, due diligence, agreement negotiation. Deliverable: entry of an institutional investor on CHF 10-15M valuation, financing of the new medicalised platform, medical governance preserved.
Frequently asked questions: private healthcare raise, shareholders' agreement and medical governance
Why a minority raise rather than a sale?
A minority raise enables (i) to preserve the control of founding shareholders and the medical directorate, (ii) to finance a structuring project (platform, expansion) without losing independence, (iii) to co-construct with a strategic partner over the long term, (iv) to retain the option of a subsequent majority sale under optimal conditions.
How to articulate pre-money valuation and investment structure?
The articulation rests on (i) the pre-money valuation derived from the independent valuation (reference CHF 10-15M), (ii) the investment ticket dimensioned to project needs (platform, WC, recruitment), (iii) the post-money valuation = pre-money + ticket, (iv) the investor stake = ticket / post-money.
What investors target Swiss private healthcare establishments?
Typical investors are (i) European healthcare funds (Antin, Ardian Healthcare, GHO Capital), (ii) Swiss family offices with healthcare appetite, (iii) industrial players in external growth (Hirslanden, Genolier), (iv) growth funds specialised in mid-cap healthcare.
How long does a private healthcare fundraising take?
The standard duration is 6 to 10 months, incorporating documentation preparation, marketing, due diligence and agreement negotiation. The mandate described was completed in 7 months.
How to ensure medical governance in the agreement?
Medical governance is ensured via (i) founder veto rights on decisions affecting the medical mission, (ii) the board composition with medical representation, (iii) contractualised quality indicators, (iv) an independent medical committee, (v) the contractually locked stability of the chief physician.
What articulation between prior valuation and fundraising?
The prior independent valuation feeds the raise by (i) providing a pre-money reference price, (ii) documenting the method to defend the valuation, (iii) objectifying negotiations with the investor, (iv) limiting challenges on the technical basis. To go further: when to call an independent expert.
Similar mandates: other M&A transactions and raises in healthcare
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.