LIPOCLINIC | CASE STUDY
SALE OF A MAJORITY STAKE TO SWISS PRIVATE EQUITY FIRM INVISION
An in depth-view on the successful and highly structured sales process to establish a strategic partnership. Avalon Advisory (formerly GP Advisory) advised the founder Dr. Falk Heck and his management team throughout the entire sales process. As of September 2021, LipoClinic has partnered with INVISION – a Swiss Private Equity firm – to accelerate the future growth of the Company and scale its operations
INTRODUCTION
With more than 4.000 surgeries per year, LipoClinic Dr. Heck Group (“LipoClinic”) is the undisputed global leader in the surgical and lasting removal of Lipedema.
Lipedema is a fat distribution disorder (ICD-classified) that is mainly affecting women. In more than 97% of the cases, the legs are affected first. During the progression of the disease, Lipedema often spreads to the arms. The degree of the disorder is classified in three stages. The undifferentiated Lipedema symptoms make diagnosis especially difficult. Most commonly women suffer from the following issues:
Severe pains and feeling of tension in the affected extremities
Lack of bodily proportions
Fatigue and exhaustion
Sports as well as conservative treatment methods (i.e. manual lymphatic drainage) do not stop the progression of the disorder, which often leads to severe psychological pressure and desperation for affected patients as countermeasures fail to materialize.
Before patients can be treated at LipoClinic, they need to obtain a specialist referral – most often by a phlebologist underlining the clinic’s professional approach. Together with his Team of more than ten surgeons and 80 employees, Dr. Falk Heck established one of the fastest-growing private clinics in the DACH region. LipoClinic serves its patients in its clinics in Mülheim an der Ruhr, Hamburg, Salzburg and Dubai.
The proprietary, highly-standardized surgical procedure (“Heck Protocol”) ensures that patients will receive the highest possible treatment standards and a lasting removal of the Lipedema together with a very low complication risk in relation to the necessary liposuction.
GROWTH POTENTIAL
Together with his highly-qualified team, Dr. Falk Heck wrote an impressive growth story since the clinic’s inception in 2015.
In order to accelerate the clinic’s development, advancing its operations to the next level as well as improving the patient care, the management team was keen to introduce a strong new partner.
Avalon Advisory’s hands-on approach offered the perfect set-up for a successful outcome, managing a process in an extremely dynamic business environment. In-depth healthcare sector expertise enabled crafting a compelling equity story, conveying the key messages to potential investors, in turn laying the foundation for outstanding investor feedback as well as highly competitive bidding process.
KEY TO SUCCESS
It is crucial to understand the core motivation of our client, Dr. Falk Heck, in order to identify the right potential partners for LipoClinic.
Furthermore, a clear process structure as well as transparent communication with all involved stakeholders and investors is an important aspect for a successful process. Avalon Advisory is committed to always conveying a strong understanding of the process to all parties.
We see our advisory services as a partnership where everyone plays an important role. We e are continuously providing valuable information along each step of the process to make working together as easy and effective as possible.
Our process structure is aimed at creating momentum which contributes significantly to finding the right partner in the set time frame. In doing so, we focus on expertise, economic factors as well as long-term strategy.
Ultimately, we were driven to identify the ideal long-term partner to strengthen LipoClinic’s market-leading position, increase the existing surgical standards as well as offer compelling development perspectives for the team.
ACHIEVING THE BEST RESULT
The quest to find the right partner occupies a significant amount of time and resources. Avalon Advisory ensures that the management team was not distracted nor negatively impacted by the high-pressure environment of the process, always allowing the Dr. Heck and his team to focus on the day-to-day business.
As the exclusive sell-side advisor, Avalon Advisory was responsible for drafting all relevant investment documents, stakeholder communication as well as leading the negotiations throughout the entire project.
Thanks to a dynamic process structure, the transaction had been successfully closed in less than six months – well ahead of the envisioned timeline – and with outstanding results.
As of September 2021, INVISION has been announced as the new majority shareholder of LipoClinic. Together, the team is looking to capture new markets, increase the efficiency of internal processes as well as establish new clinics. The goal is to further increase treatment capabilities and advance the development of surgical procedures.
CONTACT INFORMATION
Falk Ewaldsen
Managing Partner
falk@avalonadvisory.cc
+49 (0) 2054 87 357 94
