Urgent care acquisition assessment

A large healthcare provider was weighing entry into urgent care through acquisition and needed to know what a target chain was actually worth to them.

C409-51

Urgent care penetration mapped across markets

Situation

Opportunity in new market

Client has large distributed network providing patient-direct healthcare services.
Client was contemplating entry into urgent care as a complement to existing services, starting with an acquisition of a major chain.
They wanted an evaluation of the urgent care model, assessment of potential synergies, and an evaluation of major acquisition targets.

Project

Market analysis

Developed comprehensive analysis of urgent care landscape, including market and customer analysis, urgent care industry segmentation and current players, baseline economics of urgent care centers.
Built detailed economic model for alternative urgent care acquisitions including site-level economics, overhead and synergy scenarios.
Developed alternative growth strategies and scenarios assessing different combinations of integration with client’s site network (including ‘dark’ sites).

Site economics modeled under acquisition scenarios

Thresholds applied to prioritize roll-out markets

Outcome

Go-to-market restart

Comprehensive business case allowed client to confidently estimate value and appropriate price for alternative acquisitions.
Ultimately, client was outbid for the available targets because the price tag exceeded what the acquisitions were worth.
Client deployed capital in target organic capability builds to capture large share of value identified through process.
Client’s competitors have since sharply curtailed activities of their acquisitions, suggesting significant overbidding which our client avoided.

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