Dental Care Group
Helping a growth company seeking its first external financial sponsor
Dental Care Group is a chain of dental surgeries founded by three partners, all experienced dentists, in 2010 with one practice in Clacton. Over the next eight years their strategy, characterised by a commitment to the highest standards of dentistry and the provision of excellent clinical care in areas that need them, enabled the company to grow to 21 practices in Essex and East Anglia.
Having moved into a new headquarters in Brentwood, it was increasingly evident that to fully realise the potential of their strategy and continue the company’s expansion, the presence of an external sponsor would be beneficial in terms not only of funding but experience in scaling businesses.
The founders engaged PWC as their advisors who in turn recommended h2glenfern to assist with the process. h2glenfern were engaged to support the transaction by:
- Assisting with the formulation of the company’s equity story and identifying the key messages that best illustrate its future opportunity.
- Preparing the management team, who had widely varying experience of a corporate sale process, to meet and present to potential investors and familiarise them with those investors’ expectations.
- Assist in the drafting and production of supporting materials and
- Via a full dress rehearsal, prepare the team for the final management presentations and Q&A.
The founders and management team were highly competent in operating the business, the key to which is remaining on top of the latest clinical advances in dentistry and enabling their dental staff to learn the latest techniques and pass those benefits on to their patients. They however had no experience in corporate finance or of dealing with professional investors.
Over three months, h2glenfern worked with the management team and PWC on a successful presentation to debt providers and then created a comprehensive management presentation. This illustrated not only the company’s financial situation and opportunity but also its ethos and those aspects of the business that excited and motivated management.
h2glenfern educated the team about their prospective investors, demystifying the world of finance and explaining what the investors would and would not know what they needed to learn and want they did not. When necessary, h2glenfern reassured them about the value of their experience and achievement and explained that the sale process is one of communication, not examination. In h2glenfern’s experience management teams are often more than capable of articulating their story but the process can sometimes stifle their natural strengths and enthusiasm without careful coaching.
After the final rounds of presentations, G Square Capital emerged as the successful sponsor and closed its investment in April 2019.
