DOES ANYONE HAVE EXPERIENCE INVESTING IN HEALTHCARE SERVICE PROVIDERS?

I am a funded searcher conducting a search in Guatemala. I have recently started to more deliberately focus on healthcare industry related businesses, but want to learn more about the industry to better approach the search.

I am interested in learning more about any experience from searchers, investors, brokers, or industry experts related to investing in healthcare service providers and/or executing a roll-up/buy-and-build strategy in the industry. If anyone has experience in emerging markets or Latin America, that would be even better (but not a requirement)!

Any information you can provide would be great, but it would be FANTASTIC (and greatly appreciated) if you can spare a couple of minutes for a quick call to pick your brain.

General questions I have are the following:

• What treatment areas/service provider types (i.e. dental, derma, PT, dialysis, UCC, etc.) are a better match for a Search Fund investment? Which ones should be avoided? • Is it critical to have experience in healthcare space to successfully run the business post-acquisition? • Given that the owner profile is generally different in this space (i.e. doctors vs. business operators), what is the investment “pitch” that resonates best with them (i.e. gain support in business admin while solely focusing on providing health, monetize client base, etc)? • What is the general transaction structure for these types of deals (i.e. owner stays as shareholder or employee, what % ownership is left to owner, seller note %)? • What are the general economics and size of a standalone practice (i.e. EBITDA %, Revenue)? • What are the general valuation multiple ranges for a standalone practice & small/med/large chains? • What are key considerations to properly execute a buy-and-build strategy in this space? Is it too farfetched for a Search Fund?

I’ve read several reports and looked into information I could find in the web, but hoping to get some narrative from anyone with experience.

Thank you very much in advance!



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