Transaction advisory to a healthcare-based group purchasing organization
The client, a Gurgaon based group purchasing organization (GPO) in the healthcare sector aimed at raising funds overseas to penetrate deeper into the Indian market and bring scale economics to the healthcare providers.
Problem Statement
The team was engaged to offer transaction advisory which involved:
- Pre-deal evaluation
- Feasibility study of the proposed fund raise instrument, iSafe Notes
- Evaluation and advise on the financial and regulatory aspects of the contractual arrangement including FDI regulations
- Validation and review of the Standard iSafe Note agreement
- Development of the iSafe note agreement
- Capitalization Table Design
- Regulatory process outline and scenario analysis
Action Taken
- Detailed financial, technical and legal work required to prepare the iSafe Note Agreement
- Assessed and validated the suitability of iSafe Note agreement for the client
- Advised on the financial aspects of the transaction
- Designed the resultant contract structure including preparation of all necessary documentation and requisite approvals
- Drafted relevant sections requiring regulatory analysis and outline
- Designed capitalization table detailing the capital structure at various stages of fund infusion
- Detailed out the FDI policy and scenario based legal procedural requirements for implementation of the iSafe Notes Agreement
- Anticipated any post-fund raise issues
- Identified any legal issues requiring further specialist investigation
Deliverable
- Our recommendation equipped the client to envision the financial and regulatory implications of the transaction and helped simplify the associated procedural complexities.