Introduction
Healthcare remains one of the most active acquisition sectors, but financing these deals requires specialized lenders due to compliance, reimbursement, and regulatory risks. Yaw Capital recently advised on the acquisition of a $40M outpatient healthcare platform, structuring a layered capital stack that enabled a sponsor-backed buyer to close with minimal equity dilution.
The Challenge
The buyer, a private equity group, identified a platform play in outpatient healthcare. Challenges included:
- Large deal size ($40M).
- Need for layered debt and equity.
- Regulatory complexities.
- Seller required speed to close.
Traditional banks could not provide the scale or flexibility needed.
Our Solution
Yaw Capital engaged our capital markets network and assembled a blended package:
- Senior debt from a healthcare-focused institutional lender.
- Mezzanine financing from a private credit fund.
- Equity co-investment to reduce buyer equity requirements.
We managed the syndication process, negotiated covenants, and coordinated between multiple capital providers to align terms.
The Outcome
The deal closed in under 90 days. The buyer preserved equity, secured non-dilutive financing, and established a scalable platform for future acquisitions. Within 18 months, the group added three more outpatient centers under the same capital structure.
Key Takeaways
- Healthcare deals require specialized lenders.
- Capital stacks can blend senior, mezzanine, and equity.
- Yaw Capital’s capital markets expertise reduces buyer dilution.
