Customer Case Study - Weight Partners Capital

Find out how Weight Partners Capital uses the MarktoMarket platform to inform and support their acquisition strategy in lower-mid market.

Industry

Private Equity

Size

6+ with advisors

Location

London

Client Focus

SME Healthcare Services

Customer Profile

Weight Partners Capital (WPC) is a specialist investor in the UK lower mid-market healthcare services sector. WPC invests in businesses requiring deep operational transformation, leveraging the team’s decades of combined experience operating and scaling businesses.

Founded by managing partner Jim Weight, the vision of WPC is to be the UK’s leading specialist investor in its chosen area of focus, led by the values and long-standing experience of the WPC team.

WPC’s investment strategy centres on the team’s operating processes, values, and technical experience to help those most vulnerable in society while achieving strong investment returns. The SME healthcare market presents a high volume of opportunities at attractive multiples, and WPC’s buy-and-build approach enables it to grow businesses to a larger and more competitive size bracket by exit. WPC uses MarktoMarket to map sub-sectors within the broader healthcare industry, break down financial and organisational structures, and conduct valuations.

Why did WPC choose MarktoMarket?

WPC subscribed to MarktoMarket after using and reviewing numerous data providers over the past 15 years. WPC found the data and use cases offered by MarktoMarket to be a good fit with the team’s needs, while offering an attractive return on investment.

WPC operates in the lower mid-market of the UK healthcare sector, where businesses are typically ‘under the radar’ with a limited profile and overlooked by other databases. MarktoMarket’s ability to comprehensively integrate information from traditional and non-traditional sources, alongside the platform’s natural language search approach, makes it possible to identify opportunities in the lower-mid market before anyone else.

WPC continues to use MarktoMarket as it adds value to the sourcing and appraisal processes for new investments, saving crucial time for WPC’s small investment team. Previously, research was laborious, but as MarktoMarket carries out the ‘grunt work’ of analysis, it allows the team at WPC to focus on higher-level tasks.

MarktoMarket’s ability to comprehensively integrate information from traditional and non-traditional sources, alongside the platform’s natural language search approach, makes it possible to identify opportunities in the lower-mid market before anyone else.

How does WPC use MarktoMarket?

Rapid screening of Targets

WPC uses MarktoMarket to map out relevant industry sub-segments as part of assessing that subsector’s overall attractiveness, before building a list of potential targets to approach or monitor.

Portfolio valuations

WPC re-values its investment portfolio quarterly, relying primarily on the latest precedent transactions. WPC uses MarktoMarket deal multiples to identify transactions that can complement its proprietary records to form more robust valuation assumptions.

Sourcing new opportunities

When a new investment opportunity arises, WPC uses MarktoMarket to access a ‘snapshot’ of intelligence on the company’s financial history, ownership, and corporate structure.

What are the most valuable benefits of MarktoMarket to WPC?

Smarter Targeting with MarktoMarket

WPC benefits from MarktoMarket’s comprehensive dataset, which allows the team to surface new small businesses and map new and emerging healthcare opportunities. The easy-to-use interface supports efficient market and target screening, with company and deal intelligence immediately available.

Auditable data on MarktoMarket

The ability to search with natural language is particularly strong compared to other M&A / deal software we have used, making it easier and quicker to identify targets. The team at WPC can also quickly access a ‘source of truth’ on every investment opportunity by comparing MarktoMarket’s data with the information provided by a company’s advisers.

WPC portfolio and investment approach

WPC targets healthcare businesses with strong underlying demand, high barriers to entry, opportunities to deploy technology improvements, and buy-and-build growth potential.

Current WPC portfolio companies in healthcare services include Towerview Care (held since 2017), a specialist nursing home business providing care to older people with complex needs; and Grosvenor Health & Social Care (held since 2021), a market leader in the provision of domiciliary care to the elderly.

WPC’s most notable exit to date is Boxclever, a leading UK company in home product rentals. Acquired off-market in 2011, WPC achieved a successful exit alongside a co-investor in 2020.

WPC applies a hands-on approach to support potential portfolio companies, dedicating time to understand the business, people, and key stakeholders while ensuring they are providing constant support through a sophisticated network in the UK healthcare sector.