On December 8, CEE Legal Matters reported that BDK Advokati had advised MediGroup on its acquisition of Konzilijum. CEE In-House Matters spoke with Mihailo Obucina, Director of Strategy, M&A, and Business Development at MediGroup, to learn more about the acquisition.
CEEIHM: To start, tell us about MediGroup and its operations in Serbia
Obucina: MediGroup is the largest fully integrated private medical system in Serbia, having one general hospital, two special hospitals, 12 health centers, four imaging centers, and 77 blood collection points with more than 1,600 full-time employees and 1,000 consultants. We are the only privately held healthcare provider with professional management and a national presence in the four largest cities. The majority of the company is owned by the PE fund MidEuropa Partners, based in the UK.
CEEIHM: You were recently advised on the acquisition of Konzilijum. What made the target appealing for you?
Obucina: Market leadership, strong reputation, and medical quality since Konzilijum is recognized as the best laboratory in the country both by our patients and the medical community. This is our third acquisition in this sub-segment over the past four years and we managed to achieve one of our strategic objectives to become the #1 medical laboratory in all aspects (revenue, number of tests, number of locations, number of employees, etc.).
CEEIHM: What was the most complex aspect of this deal from a legal perspective?
Obucina: The deal structure was complex due to the equity/asset carveouts which had to be completed within a very limited timeframe and healthcare legislation which was challenging to navigate through.
CEEIHM: How was the legal work split between your in-house legal team and that of BDK’s?
Obucina: We consider BDK as a thorough partner throughout the process and there is no clear line between them and our legal team. BDK was fully involved in all aspects of the transaction, from legal due diligence until closing.
CEEIHM: Lastly, why did you pick BDK to advise you on this matter?
Obucina: Expertise, flexibility, and previous experience in the healthcare sector, as this is the sixth acquisition for MediGroup since 2018 that we completed together with BDK as our legal advisors.