The company had a strong and experienced management team committed to future growth. It had an excellent market position with good customer relationships. Its strategy was to capture a significant share of the emerging market for static NHS scanners, while maintaining its dominant position in the public and private mobile market.
The business benefited from recurring revenues with over 60 per cent of its turnover under contract for at least three years. While the business had a strong CEO, there was scope to improve the management team. The research we undertook indicated that the market would grow rapidly as there was a relative shortage of MRI scanners in the UK.
Key Business Achievements
Strengthened the management team to support future growth
Solidified its position as market leader in the static and mobile MRI scanner markets
Established an Italian joint venture as a first step into Europe
Grew turnover from £9.6 million to £17.6 million
Internal Rate of Return
In 2001 Alliance Medical was sold for £84 million to Dubai International Capital (DIC), generating a multiple of 3.1 times cost and an IRR of 38 per cent.