On February 10, 2022, CEE Legal Matters reported that Wiercinski Kwiecinski Baehr had advised Innova Capital Group's Innova 6 fund on its investment in three dental services companies: DPC, Pomorska Inicjatywa Medyczna, and Medicadent Stomatologia. CEE In-House Matters spoke with Tobiasz Jankowski, Managing Director at Innova Capital Group to learn more about the matter.
CEEIHM: To start, tell us a bit about the Innova Capital Group.
Jankowski: Innova has maintained a single-minded commitment to mid-market buyouts in Poland and Central Europe. We focus on making control investments in companies with EV’s of EUR 25–150 million with equity tickets of EUR 25–40 million. Innova has organized itself around target sectors including Business & Financial Services, Technology, Manufacturing, Consumer, Healthcare, and Retail. From 28 years of experience we know that a successful Innova deal will almost certainly be one of three signature transaction types: (1) Founder Succession –Strategic partner of preference. This is our iconic deal type which is suited to a Founder looking to step back from their business, realize some liquidity, yet retain a financial interest alongside Innova; (2) Platform+ is Innova’s pioneering approach to drive sector consolidation in typically fragmented markets. The deal requires that at least two companies be combined at the outset of the transaction. This type of deal is used to secure the benefits of synergies up-front and leverages their joint potential; and (3) Corporate Carve-out – a reliable counterparty for corporate owners seeking to spin out non-core operations, and the partner of choice for the management boards of those subsidiaries implementing an independent development strategy. Thanks to rapid and transparent decision-making, and extensive experience in such situations, we minimize the risk of such transactions for all parties involved.
CEEIHM: What was the reasoning behind this investment? What was it about the targets – DPC, Pomorska Inicjatywa Medyczna, and Medicadent Stomatologia – that you found particularly attractive?
Jankowski: As an attractive niche of the healthcare sector, the stomatology space was followed by Innova for quite some time before this investment. The three chains create a great platform that can be further developed organically and inorganically, owing to the unique mix of competencies created by the transaction: medical expertise, the competence of the medical and management teams, local market recognition and position, as well as the value contributed by our partners in the deal.
CEEIHM: What about post-acquisition? What are the plans?
Jankowski: We plan to continue pursuing organic and inorganic growth initiatives to grow above the market rate and create a leading independent group in the region. We will continue to focus on the highest medical standards, patients’ comfort, and convenience, and aim to be the most attractive workplace for the medical and supporting staff. Our intention is to be a large, professionally managed organization and at the same time keep the independence and entrepreneurial spirit of the local leaders.
CEEIHM: What was the most complex aspect of this deal/these deals?
Jankowski: Managing the parallel processes, all of which had their own challenges and peculiarities.
CEEIHM: Why did you choose Wiercinski Kwiecinski Baehr and Sorainen as your advisors on this deal?
Jankowski: In choosing the legal advisors we were looking for the right combination of high-quality legal service, good process management, transaction-type experience, local market expertise, seamless cooperation between teams/jurisdictions, and, naturally, great value for money.