Entrepreneurial partnership

Detailed version

Context

Group of radiotherapists operating three sites in Germany realised that the local medical landscape was changing quickly. Several large groups – including radiology platforms – had started to acquire radiotherapy practices. These shareholding doctors saw this as a long term trend (and threat) and took the decision to open up the share capital of their company to a partner who would help them continue to play a leading role in the provision of oncology services in the region. As quoted during the first meeting with Stingray, they wanted to “remain in the driver’s seat”. They ran a formal process to select the most appropriate partner.

Issues to address

The doctors were looking for a partner who would:

  • Commit to radiotherapy on the long term.
  • Bring the appropriate resources and know-how to help build a regional cluster.
  • Bring relevant management experience to a team of managing directors exclusively composed of doctors.
  • Allow them to realise and secure part of the entrepreneurial heritage while keeping a significant minority stake in the company.
  • Guarantee total independence to doctors regarding for all their medical decisions.

The solution

Stingray was selected as the preferred partner on the basis of a solution that included the following benefits:

  • Opportunity to benefit from an early partial cash out while continuing to be financially interested in the development of the practices.
  • Commitment of Stingray to actively support and drive the external growth of the practices.
  • Jointly-coordinated recruitment of a Managing director to strengthen the admin and management functions and free up time for doctors.
  • Implementation of an incentive program to allow selected talents (doctors and other medical professionals) to become eligible for shareholding in the practices.
  • Clear governance rules with regards to internal decision making.
  • Pre-agreed exit mechanisms regarding future sale of retained shares.
  • Access to Stingray resources in areas such as procurement, artificial intelligence and cybersecurity.

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