By Simon Chapman, Partner
We recently supported our client Forge Care in closing a seven-figure venture capital investment deal – continuing a string of recent successes we have seen in the health and care sectors.
Forge Care is led by Gavin Miller and his family and Burgis & Bullock has been working with them since 2013 when the firm advised the family on the sale of their previous healthcare business to private equity backed Voyage Care.
The Nuneaton-based Forge Care signalled a move back into the care sector for the Millers, and we were on hand again to help them in this project. We supported with setting up the new company, structuring the shareholdings, tax advice, and finally helping with the debt and equity fundraisings.
Forge Care is an innovative community care concept, that enables a fully therapeutic experience for children who have faced disruption to their early development with severe early-life trauma.
After initially securing a loan facility totalling £1 million from the Warwickshire Recovery and Reinvestment Fund (WRIF), we set about attracting equity investment to help the Millers take the Forge Care project to the next level.
After approaching a number of funders alongside Gavin, Midven proved to be the best fitting partner – in part due to being based here in the Midlands.
Forge Care secured in excess of £1 million from the Midlands Engine Investment Fund (MEIF), which is managed by Midven.
Midven identified Forge Care as a unique opportunity to help many young people who need specialised care and a safe space to thrive.
We provided commercial finance guidance, advice on the equity terms, financial modelling and helped through the due diligence and legal processes. The firm continues to work with Forge Care. We are auditors to the company and look forward to continuing to work closely with them as the project continues.
This latest deal builds on a growing list of successful projects completed across the health and care sectors.
One recent deal saw the sale of domiciliary care business The Care Bureau to Vida Care – with Burgis & Bullock helping to identify Vida Care as the right partner for the sale and completed the deal.
We were M&A advisers on the sale of Foscote Private Hospital in Banbury, which has now been incorporated into a larger group and is able to continue providing care for the benefits of residents in Banbury.
The firm was engaged to market the hospital for sale and provide advice on completing the deal.
We also advised shareholders on the sale of Tic Toc Day Nursery in Coventry to Kids Planet, a nationwide operator for children’s day nurseries that was in the process of making acquisitions across the UK.
We have seen significant growth in the area of healthcare and this is certainly a flourishing sector.
In the medical products arena, we advised Consultingroom.com Limited on the sale of HydraFacial UK, a distributor of skin treatment equipment, to a private equity backed US acquirer.
We are also currently advising several companies developing and delivering technology-enabled healthcare products and services.
With the growing demand for care services and increased user acceptance of digital health services, this trend provides huge scope for better and more cost-effective solutions in areas such as wellness, diagnostics, and care delivery. We anticipate accelerated merger and acquisition activity and venture capital investment over the next few years.
As a firm, we have built a breadth of experience and knowledge in the health and care sectors – from children and elderly care, to medical products and healthtech.
Through our experience we understand what the main drivers are, who the likely buyers and funders are, valuation metrics, how to structure deals and, ultimately, how to secure the best deals for our clients in the healthcare sector.
Private equity funding in the healthcare sector continues to hit new heights because with an ageing population in the UK, it is seen a safe growth sector.
Healthtech is the fastest growing vertical within the health sector and access to the right buyers and funders is crucial.
Whether a client is looking to sell their businesses, or raise funds for an innovative model of care (such as Forge Care), we have the experience, credentials and contacts to create better outcomes.
Read more about our work with Forge Care and Midven: https://www.burgisbullock.com/specialist-care-provider-secures-seven-figure-investment/