Growth Investment

Print this page (printer friendly)

Featured Deal - Babybond

The BUSINESS

Babybond Ltd. started in Uppingham, Rutland in 1998 and provides "self-pay" private ultrasound scans to pregnant parents. Our unique approach to this healthcare service proved to be a success with the public and our UK group of wholly owned and franchised clinics will achieve total sales revenue of £1.8 million in 2008.

Throughout the UK, we currently employ 38 health care professionals (Sonographers) on full, part time and session based contracts and are looking to increase this number over the next few years.

The MANAGEMENT

The founders of the company are Jan and Mike Steward, both ultrasound professionals since 1980. Jan, a qualified clinical ultrasound practitioner and Mike, a Bio-Electronics engineer and experienced marketeer within the industry, combined their complimentary skills to grow the company organically to its current size.

Jan and Mike will align their respective expertise to scale up the business and maintain service quality by implementing the necessary HR, Clinical and IT process updates together with continuing marketing innovation.

The OPPORTUNITY

Babybond currently has 18 clinics across the UK, from London to Glasgow and Newcastle to Cardiff, and is dedicated to opening several more within the next few months. As Babybond is already profitable, the company could have self-financed its expansion, but venture capital funding will enable the business to achieve its aims much more quickly.

The company will also benefit from having new board members who are experts in growth strategy, partnership building and exit preparation. The funding round, which was oversubscribed, raised in excess of £200,000. The money will be used to enable Babybond to implement a bespoke web booking system across the entire group, increase its tele-sales capacity and as stated above, speed up the company’s expansion across the UK.

The FUNDERS' VIEW

The investors backed the company for a number of reasons. Firstly, Babybond impressed us from day one because they have so successfully married fantastic customer service with sound business judgement. Jan and Mike have overseen impressive growth in the last few years, and we agreed with their opinion that there is an opportunity for further significant growth over the next few years. Despite being the number one antenatal scanning company in the UK already, the market remains very fragmented. Mike and Jan also impressed us with their meticulous record keeping and data on all aspects of the business, which has been used to create good efficiencies.

As a medical services company the investors obviously also needed to mitigate any related risks, and here Babybond exceeded all our expectations. They have been scanning since 1998, are members of all relevant professional bodies with all the correct insurances (and more) in place. They also only use qualified Sonographers, unlike many of the competition, and were in fact the UK’s first ISO Quality Endorsed ultrasound provider.

The investors are expecting an 8x-10x return within the next five years, with a trade sale the most likely exit.

It's not just about the MONEY

Mike Piper of Venture Investment partners will join the board as Chairman. Mike brings over 25yrs of venture capital experience, and is also a partner in Leicester’s first private GP practice. Tom Yardley from East Midlands Business Angels will also be attending board meetings as a regular observer, as will a member of the East Midlands Early Growth Fund.

Also, the company is close to appointing a new Medical Advisor to the board, who is a world leader in related health matters.

What does Mike Piper, of Venture Investment Partners, say?

"This is one of the most professionally run early stage companies I have come across during my 25 years experience in venture capital. I believe the business has a great future and I am delighted to have been asked to take on the role of Chairman."