Healthcare has been a highly attractive sector for private equity, with over 150 deals completed in 2023 - the number of healthcare industries deals involving private equity reached its highest level at 57%.
In the UK, there are numerous private equity firms that see the value in mid-market healthcare businesses, some solely focused on the sector. Firms like Apposite Capital, Limerston Capital, Ansor Ventures, LDC, and BC Partners all have funds deployed into UK healthcare and medical services businesses. The healthcare sector has had it tough since the pandemic in 2020, plagued with ongoing staffing issues, increasing compliance changes, lack of funding, an aging population, and record highs of patient waiting lists.
Fortunately, the appetite for private equity firms looking to invest in the sector – from dental practices and medical device manufacturers through to care home groups and vet practices – can provide much-needed reassurance for business owners. PE investment aids growth with additional expert financial and operational support.
Growth is key for private equity firms, and while there are numerous investment types they offer, the bottom line is realizing a strong return on their investment. This is where cloud accounting solution Sage Intacct can play a vital role by ensuring efficient financial management and reporting for PE-backed UK healthcare businesses.
Comprehensive Reporting and Metrics
Sage Intacct provides comprehensive reporting capabilities tailored to the needs of private equity firms and their portfolio companies. With deep insights into key performance indicators (KPIs) and metrics, PE firms can closely monitor investment performance. From revenues and profit margins to accounts receivable aging and cashflow projections, the right metrics give firms the visibility to drive growth initiatives.
Automated Financial Consolidations
For PE firms managing multiple investments across healthcare verticals, consolidating financial data is crucial yet often tedious. Sage Intacct streamlines this process by automating intercompany eliminations and currency conversions. This ensures an accurate, real-time picture of portfolio performance without wasting time on manual consolidations.
Audit-Ready Financials
Healthcare is a highly regulated industry, with stringent compliance requirements around financial reporting. Sage Intacct's built-in controls, audit trails, and GAAP/IFRS compliance give PE firms audit-ready financials, minimizing audit pains. This frees up time better spent on patient care rather than financial admin.
Scalability for Growth
As PE firms acquire and integrate new healthcare businesses into their portfolios, financial systems must easily scale. Sage Intacct's cloud architecture enables an unlimited number of entities, users, and transactions. New portfolio companies can be rapidly onboarded without expensive hardware or IT overhead.
By deploying Sage Intacct, PE-backed UK healthcare companies can create more time and resources to allow care providers to focus on delivering exceptional patient care and driving business growth. With automated financial processes, insightful metrics, and robust controls, Sage Intacct is not only best in class as a software solution, but also for private equity investors in the healthcare space.