Financial Modeling
Challenge
NEST is an owner and operator of maternal and children's healthcare facilities in Senegal. They have 2 locations in Dakar, the capital of Senegal, and achieved revenue of ~$1.3m in FY19. NEST is the only healthcare provider in Senegal to have received an ISO certification for every aspect of their operations and processes.
NEST is seeking up to ~$11m in funding (equity, debt, and/or grants) to expand their operations by acquiring and improving the operations of existing, practitioner-owned and operated healthcare facilities throughout West/Central Africa.
The purpose of the engagement is to help NEST refine their business plan by (1) appropriately budgeting the capital requirements of their expansion program, (2) developing a rigorous valuation and acquisition structuring framework for potential targets and (3) identifying financing structures that would be sustainable for NEST while being attractive for potential capital providers.
Expected outcome
(1) Flexible financial model in Excel format including all formulas and an output tab summarizing key P&L, cashflow statement, balance sheet, equity return analysis, and debt service coverage ratios over the next 7 years
(2) Clinic valuation and transaction structuring memo (1-2 pages/slides)
Resources provided
Historical financials, customer survey data, business plan, investor presentations/teasers
Program structure
Financial Model
Build detailed financial model including current operations and future acquisitions
Funding Structure
Calibrate funding structure for new acquisitions to allow for flexibility funding mix between equity, debt and grant financing
Clinic valuation and acquisition structuring memo
Develop a clinic valuation and acquisition structuring memo to be leveraged by NEST management
Skills
Languages
Nonprofit mission
NEST's mission is to offer quality healthcare to low and middle populations in urban and peri-urban areas of West and Central Africa, through a network of quality certified medical centers.
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