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.
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.