Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Preparing for Private Equity (or Venture Capital)India-centric PerspectiveInnovations in Healthcare Management & Informati...
Combined Perspective of Operator & Investor Atlas Venturez advises private equity funds Atlas Venturez helps build high-...
Market Reality (India)• PE Deals 2009 >$3.8 Billion across >232 deals• Healthcare & Lifesciences• >8% of total deals• $328...
Current reality Strategic investors and funds are very keen to get hands on wellmanaged, scalable health-care companies ...
Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbur...
MindsetAm I fundable? Intellectual Property (or significant competitivebarriers) Scalable Reach $50M revenues within 4 ...
Is Organized Funding the answer to ourDreams? Strategic investors and funds are very keen to get hands onwell managed, sc...
MindsetSpecific disbursement of fund plans Build a very detailed plan for spending (incl. phasing) Account to nearest $5...
MindsetCase Study – Investor Exit Hospitals Strategic Sale HMS IT Provider IP Transfer
Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbur...
StructureCase Study – Growth / Business Plans What is the difference between? We hired a consultant to help me build det...
StructureCase Study – Growth / Business Plans What is the difference between? We hired a consultant to help me build det...
StructureReporting Systems Funds will want detailed performance information regularly Build muscle and capability to tra...
StructureManagement Team Build bandwidth of the core team Chairman, CEO, CFO, critical unit heads Funds do not invest i...
Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbur...
CaveatsScaling Model Hub and Spoke Multi-Location (economies of scale and scope) Medical Tourism International Markets...
CaveatsCase Study Numbers Case Study India Clinics Case Study HMS IT
Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbur...
Final Thoughts Congratulations. We think your company has a greatfuture - here’s a check for $AB million You now work fo...
Final Thoughts Alliances Medical and para-medical education Branded healthcare system looking for Indian expansion Bet...
Upcoming SlideShare
Loading in …5
×

Innovations in Healthcare Management & Informatics

864 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Innovations in Healthcare Management & Informatics

  1. 1. Preparing for Private Equity (or Venture Capital)India-centric PerspectiveInnovations in Healthcare Management & InformaticsSameer MehtaAtlas VenturezDr Mehta’s Hospitals
  2. 2. Combined Perspective of Operator & Investor Atlas Venturez advises private equity funds Atlas Venturez helps build high-growth (fundable)companies Atlas Venturez advises boards and leadership teams onpreparing and successfully navigating fund placements Operating role in tertiary care hospitals Dr Mehta’s Hospitals Mehta Children’s Hospitals Mehta Advanced Day Care CenterEvaluated oradvised over50 healthcaretransactions
  3. 3. Market Reality (India)• PE Deals 2009 >$3.8 Billion across >232 deals• Healthcare & Lifesciences• >8% of total deals• $328M on 20 deals - 2009 vs $607M on 35 deals – 2008• Big Dogs: Max India, KMC, Apollo, KIMS (hospitals)• Stage Split across all PE deals (by volume)Source: Venture Intelligence 2009 PE Digest
  4. 4. Current reality Strategic investors and funds are very keen to get hands on wellmanaged, scalable health-care companies Interest across company phases, though most focused on proven-tech, growth-equity or late-stage companies---------------------------------------vs----------------------------------------- Good prospects have poor scalable growth plans Many real estate, premature or ultra-small prospects Miscellaneous e.g., trusts, franchise, co-own IP / brand… Early stage – not many innovative or robust prospects based onstrong business fundamentals Limited understanding of value or cost of organized capital
  5. 5. Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbursement of fund plans Strengthening financials for fair / favored valuations What are the full range of investor exits Build and agree robust long term growth plan Develop a robust reporting system and MIS Measure performance versus industry benchmarks acrossmultiple facets of the business (incl. clinical) Ensure management team band-width Scalability of business e.g., hub & spoke, add markets Don’t boost numbers – you’ll live with consequences Do not over-shop or over-expose your growth plans Find an advisor with content in healthcareMindsetStructureCaveats
  6. 6. MindsetAm I fundable? Intellectual Property (or significant competitivebarriers) Scalable Reach $50M revenues within 4 – 5 years Healthy and sustainable EBITDA and PAT margins Substitutable Service versus Technology / Products Current flavor of the month (investors)
  7. 7. Is Organized Funding the answer to ourDreams? Strategic investors and funds are very keen to get hands onwell managed, scalable health-care companies Interest across company phases, though most focused onproven-tech, growth-equity or late-stage companies---------------------------------------vs----------------------------------------- Good prospects have poor scalable growth plans Too many real estate or premature prospects Early stage – not many innovative or robust prospects basedon strong business fundamentals Operators do not fully understand the value or cost oforganized investor capital (PE funding sounds cool!)
  8. 8. MindsetSpecific disbursement of fund plans Build a very detailed plan for spending (incl. phasing) Account to nearest $5 - 10k Consider capital ROI of large ticket specific equipment Attempt to build some additional flexibility in draw-down Consider aspects that investors do not like e.g., real estate Historically folks under predict and run out earlier Best Practice: Save 4 – 6 months burn for unpredictability
  9. 9. MindsetCase Study – Investor Exit Hospitals Strategic Sale HMS IT Provider IP Transfer
  10. 10. Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbursement of fund plans Strengthening financials for fair / favored valuations What are the full range of investor exits Build and agree robust long term growth plan Develop a robust reporting system and MIS Measure performance versus industry benchmarks acrossmultiple facets of the business (incl. clinical) Ensure management team band-width Scalability of business e.g., hub & spoke, add markets Don’t boost numbers – you’ll live with consequences Do not over-shop or over-expose your growth plans Find an advisor with content in healthcareMindsetStructureCaveats
  11. 11. StructureCase Study – Growth / Business Plans What is the difference between? We hired a consultant to help me build detailed growth plans We hired an investment bank to help build forecasts Our CFO or MBA generated our forecasts
  12. 12. StructureCase Study – Growth / Business Plans What is the difference between? We hired a consultant to help me build detailed growth plans We hired an investment bank to help build forecasts Our CFO or MBA generated our forecasts Best Practice – Department head and leadership teamdevelops clear long term internal business plans (withcommitted milestones) on our vision, advisor / externalbody has strengthened the presentation of the plan forinvestors
  13. 13. StructureReporting Systems Funds will want detailed performance information regularly Build muscle and capability to track and measure financial,commercial, clinical and operational metrics within MIS Management team must understand and be able to defend thedata and rationale behind metrics Compare metrics vs previous and industry benchmarks Best practice – develop a system with one – two levels deeperand more frequently versus investor requirements Best practice – use monthly and quarterly dashboards
  14. 14. StructureManagement Team Build bandwidth of the core team Chairman, CEO, CFO, critical unit heads Funds do not invest in 1 man teams Age and breadth of experience of core team Validate qualifications and experiences of key staff No major skeletons or surprises Alignment and incentive structure for key staff Some performance based linked to metrics at the LT level Best practice – active (advisory) board pre-fund raise
  15. 15. Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbursement of fund plans Strengthening financials for fair / favored valuations What are the full range of investor exits Build and agree robust long term growth plan Develop a robust reporting system and MIS Measure performance versus industry benchmarks acrossmultiple facets of the business (incl. clinical) Ensure management team band-width Scalability of business e.g., hub & spoke, add markets Don’t boost numbers – you’ll live with consequences Do not over-shop or over-expose your growth plans Find an advisor with content in healthcareMindsetStructureCaveats
  16. 16. CaveatsScaling Model Hub and Spoke Multi-Location (economies of scale and scope) Medical Tourism International Markets Mobile Platform New Markets e.g., Nanotechnology, Education…
  17. 17. CaveatsCase Study Numbers Case Study India Clinics Case Study HMS IT
  18. 18. Focus of TodayMindset, Structure, Lessons Am I fundable? Is organized funding the answer to our dreams? Specific disbursement of fund plans Strengthening financials for fair / favored valuations What are the full range of investor exits Build and agree robust long term growth plan Develop a robust reporting system and MIS Measure performance versus industry benchmarks acrossmultiple facets of the business (incl. clinical) Ensure management team band-width Scalability of business e.g., hub & spoke, add markets Don’t boost numbers – you’ll live with consequences Do not over-shop or over-expose your growth plans Find an advisor with content in healthcareMindsetStructureCaveats
  19. 19. Final Thoughts Congratulations. We think your company has a greatfuture - here’s a check for $AB million You now work for someone else You have just lost a few degrees of operating freedom The world changes – build relationships with your investor tosustain you through uncertainty and rough waters Understand their mind-set and way of working (speak toinvestor portfolio company leadership teams) Have fun – you now have fuel to power your dreams
  20. 20. Final Thoughts Alliances Medical and para-medical education Branded healthcare system looking for Indian expansion Beta testing new health care informatics systems Business Seeking investor prospects or support portfolio companies Providing new jet engines to your business Funding your business aspirations (seed to PE) Contact sam@atlasventurez.com or sameer@mehtahospitals.com

×