Frequently Asked Questions
Ojala Healthcare is pioneering a strategic approach to infusion therapy consolidation in South Florida. Our methodology focuses on acquiring high-potential infusion centers and home healthcare providers at disciplined valuations (typically 3-5x EBITDA), implementing immediate operational improvements, and creating significant value through economies of scale, standardized protocols, and centralized administrative functions.
Unlike traditional consolidators who focus solely on cost-cutting, our approach emphasizes revenue enhancement through expanded service offerings, improved payor contracts, and strategic marketing. We maintain a relentless focus on EBITDA growth through both acquisitions and operational improvements, with a clear exit strategy targeting 7-10x multiples within a 3-5 year timeframe.
We employ a strategic financing approach that maximizes returns while maintaining operational control. Our acquisition strategy primarily utilizes debt financing rather than equity when possible, allowing us to maintain majority ownership and decision-making authority throughout the growth process.
By leveraging senior debt, subordinated debt, and selective equity partnerships, we create a capital structure that optimizes returns while managing risk appropriately. This approach allows us to execute multiple acquisitions in rapid succession without significant equity dilution, creating substantial value for our investors and partners.
Our financing partners understand the healthcare sector and specifically the infusion therapy market, enabling us to close transactions efficiently and implement our 100-day value creation plans immediately post-acquisition.
Ojala Healthcare Group differentiates itself through several key factors:
1. **Specialized Focus**: We exclusively target infusion therapy and home healthcare providers in South Florida, allowing us to develop deep expertise in this specific niche rather than pursuing a scattered approach across multiple healthcare segments.
2. **Operational Excellence**: Our leadership team brings decades of combined experience in healthcare operations, with a proven track record of improving EBITDA margins by 8-12% within 12 months of acquisition.
3. **Value Creation Methodology**: We implement a systematic 100-day post-acquisition plan that captures immediate synergies while preserving the clinical quality and culture that made each acquisition target successful.
4. **Strategic Board Composition**: Our board includes industry veterans with extensive relationships with payors, pharmaceutical companies, and potential strategic acquirers, creating value beyond financial engineering.
5. **Clear Exit Strategy**: From day one, we develop a clear path to exit, typically targeting strategic sales to larger healthcare organizations at premium multiples (7-10x EBITDA) within 3-5 years.
Our integration process follows a structured methodology designed to capture value quickly while respecting the unique aspects of each acquired business:
**Pre-Closing (30-60 days):**
– Comprehensive operational assessment
– Identification of quick-win opportunities
– Development of detailed 100-day integration plan
– Selection of integration team members
**First 30 Days:**
– Implementation of standardized financial reporting
– Introduction of centralized purchasing for immediate cost savings
– Retention agreements with key clinical staff
– Initial payor contract review and optimization strategy
**Days 31-60:**
– Integration of IT systems and electronic health records
– Implementation of standardized clinical protocols
– Staff training on expanded service offerings
– Facilities assessment and improvement plan
**Days 61-100:**
– Marketing rebranding and local outreach
– Complete integration of back-office functions
– Implementation of performance-based compensation
– Development of growth plan for the location
This systematic approach ensures we capture synergies quickly while maintaining clinical quality and staff morale throughout the transition.
We target infusion centers and home healthcare providers with the following characteristics:
– **EBITDA Range:** $500,000 to $3 million annually
– **Geography:** South Florida (Miami-Dade, Broward, Palm Beach counties)
– **Specialization:** Providers serving chronic condition patients requiring ongoing infusion therapy
– **Payor Mix:** Balanced mix of commercial insurance, Medicare, and self-pay
– **Growth Potential:** Facilities operating below capacity or with expansion opportunities
– **Reputation:** Strong clinical outcomes and patient satisfaction scores
– **Leadership:** Owner-operators seeking either exit or partnership opportunities
We are particularly interested in providers specializing in treatments for autoimmune disorders, chronic infections, nutritional deficiencies, and specialty pharmaceuticals, as these areas offer significant growth potential and strong reimbursement profiles.
Our investment strategy is designed to deliver exceptional returns while managing risk through operational expertise and disciplined capital allocation:
– **Target IRR:** 25-35% over a 3-5 year investment horizon
– **Cash-on-Cash Multiple:** 3-4x invested capital
– **Acquisition Multiples:** 3-5x EBITDA for platform and add-on acquisitions
– **Exit Multiples:** 7-10x EBITDA through strategic sale
– **Value Creation:** Approximately 60% through operational improvements and 40% through multiple expansion
We achieve these returns through a combination of:
– Disciplined acquisition pricing
– Rapid implementation of operational improvements
– Strategic growth initiatives that expand service offerings
– Economies of scale through centralized functions
– Improved payor contracts as we gain regional scale
– Positioning the consolidated platform for strategic sale to larger healthcare organizations
Our approach focuses on creating real operational value rather than financial engineering, resulting in a more sustainable and attractive business for eventual exit.
Maintaining and enhancing clinical quality is central to our value creation strategy. We implement several key initiatives to ensure quality of care improves throughout our growth:
1. **Clinical Leadership Retention:** We structure retention agreements with key clinical leaders at acquired facilities, ensuring continuity of care and preserving institutional knowledge.
2. **Standardized Protocols:** We implement evidence-based clinical protocols across all locations, drawing on best practices from each acquired facility and current medical literature.
3. **Quality Metrics Dashboard:** We deploy a comprehensive quality monitoring system that tracks key clinical outcomes, patient satisfaction, and safety metrics in real-time.
4. **Ongoing Education:** We invest in continuing education for clinical staff, ensuring they remain current with the latest advances in infusion therapy.
5. **Patient Experience Focus:** We maintain a dedicated patient experience team that regularly gathers feedback and implements improvements.
6. **Physician Relationships:** We strengthen relationships with referring physicians through regular communication, outcome reporting, and collaborative care planning.
By focusing on these initiatives, we’ve consistently improved clinical outcomes and patient satisfaction scores post-acquisition, demonstrating that quality and growth can advance together with the right systems and focus.
We are actively expanding our board and advisory team with industry leaders who can contribute to our aggressive growth strategy.
Current opportunities include:
**Board of Directors:**
– Healthcare services executives with M&A experience
– Financial executives with healthcare transaction expertise
– Infusion therapy clinical leaders with multi-site management experience
– Executives with payor contracting and reimbursement expertise
**Advisory Board:**
– Physicians in specialties that frequently prescribe infusion therapies
– Healthcare regulatory and compliance experts
– Healthcare technology and data analytics specialists
– Regional healthcare network executives
– Former executives from potential strategic acquirers
Board members receive competitive equity compensation aligned with our value creation timeline. Advisory board members receive project-based compensation and networking opportunities within our growing organization.
Ideal candidates bring not only expertise but also strategic relationships that can accelerate our growth through acquisition sourcing, payor contract optimization, or positioning for eventual exit.
Our acquisition sourcing strategy employs multiple channels to identify the best opportunities before they reach the broader market:
1. **Proprietary Outreach:** Our team directly contacts owner-operators of infusion centers and home healthcare providers in our target region, introducing our vision and exploring potential partnerships.
2. **Industry Relationships:** We leverage our board’s extensive healthcare network to identify owners considering transition or retirement.
3. **Healthcare Intermediaries:** We maintain relationships with healthcare-focused business brokers, investment bankers, and advisors who understand our acquisition criteria.
4. **Professional Service Providers:** We work with healthcare-focused accountants, attorneys, and consultants who often have early knowledge of owners considering exit options.
5. **Physician Networks:** We engage with physician groups who refer to or own infusion centers and may be seeking management expertise or exit options.
This multi-channel approach allows us to evaluate approximately 20-25 opportunities annually, conducting detailed diligence on 8-10, and ultimately completing 3-5 acquisitions per year that meet our strict criteria for quality, growth potential, and valuation.
Our strategic timeline follows a disciplined approach to value creation and exit:
**Year 1 (Platform Building):**
– Acquire initial platform company
– Implement core operational systems and team
– Complete 1-2 strategic add-on acquisitions
– Establish centralized administrative functions
**Years 2-3 (Growth Phase):**
– Accelerate to 3-5 acquisitions annually
– Expand service offerings across all locations
– Optimize payor contracts leveraging increased scale
– Implement standardized marketing and referral development
**Years 4-5 (Optimization & Positioning):**
– Focus on EBITDA margin enhancement
– Develop relationships with potential strategic acquirers
– Complete final tuck-in acquisitions
– Standardize all operations for seamless transition
**Exit (Years 5-6):**
– Position for sale to strategic healthcare acquirer
– Target 7-10x EBITDA multiple
– Structure transaction to maximize after-tax returns
– Ensure continuity for patients and key staff
This timeline may accelerate based on market conditions and strategic acquisition opportunities, but our disciplined approach ensures we create maximum value regardless of market timing.
Take the Next Step with Ojala Healthcare
Ready to explore opportunities with us? Whether you’re an investor seeking strong returns or an infusion center owner considering a partnership, we’re here to answer your questions and discuss how Ojala Healthcare can create value for you.