Hospital Project – Financial Modeling & Private Equity Valuation Support
About the Hospital Project
A Middle Eastern healthcare group engaged DNA Growth to support a $100+ million hospital project with robust financial planning and private equity readiness. The project aimed to introduce a Private Equity (PE) investor onto the cap table and required a fully defensible, data-backed valuation strategy that could withstand intense due diligence scrutiny.
Given the project’s capital-intensive nature and long-term horizon, the client needed clarity on topline projections and unit economics, breakeven timelines, and divisional performance metrics. DNA Growth’s scope included:
- Multi-year financial modeling, broken down by clinical and non-clinical departments
- Revenue forecasting by specialty, service line, and patient type
- CapEx and OpEx modeling across infrastructure, equipment, staffing, and operational readiness
- Stress-testing scenarios under various occupancy, pricing, and cost assumptions
The model was responsible for answering complex demand dynamics in healthcare, government regulatory frameworks, insurance reimbursements, and macroeconomic volatility in the region.
The Solution
Our team successfully delivered a detailed valuation model tailored for investor review, built on:
- Best-in-class assumptions inspired by industry benchmarks and regional comparables
- Multi-layered cost modeling, including fixed vs. variable split
- Built-in sensitivity analysis dashboards to toggle assumptions across different scenarios
- ROI projections, internal rate of return (IRR), and discounted cash flow (DCF) valuations
Additionally, our team provided:
- A detailed financial justification report, documenting assumptions, logic, and sources
- Investor-ready visuals and summary outputs to aid boardroom discussions
- Advisory support during investor meetings and due diligence Q&A
This project reflected DNA Growth’s expertise in healthcare financial modeling, private equity fundraising strategy, and institutional-grade business consulting.
The Impact
The financial model we built, along with the accompanying documentation, cleared the investor’s due diligence phase while exceeding expectations. In fact, the PE firm chose to invest at the higher end of DNA Growth’s valuation range, validating the credibility and robustness of our approach and instilling confidence in the project’s future.
Construction of the hospital began shortly after, with operations launched in 2022. The model, which has proven worth during the planning phase, is now being used internally to track cost overruns, departmental profitability, and project cash flow health, setting a positive tone for the project’s future.
