Solution Solution

Take Private

“Listing is getting costlier while its benefit is declining.”
“I want to eliminate the risk of a hostile takeover completely.”
“I want to manage the company from a long-term perspective without worrying about a short-term share price volatility.”

Solution

01

When a listed company wishes to avoid the cost of listing or the risk of hostile takeover or restructure business strategies from a long-term perspective not bothered by volatile share price, Polaris may sponsor a Going Private transaction.
Solution

02

“Management Buyout (MBO)” where the management team invest their own money in the transaction is another option.

Features: Based on the concept of “Good Medical Practice Through Good Management,” Sogo Medical aims to support good healthcare and contribute to the creation of a better society through consulting services to medical institutions as a basis, DtoD (Doctor to Doctor;　medical succession, medical collaboration, and medical occupation support systems) business, and developing valuable pharmacies. The company operates over 700 pharmaceutical dispensing stores nationwide, including those in the medical malls that the company developed, and provides a comprehensive range of services related to medical business management, including consultation to medical institutions, and DtoD to assist job transfers and clinic openings, as well as leasing and renting medical devices and equipment, in-hospital retail store operation, and staffing services.

Investment Pattern: Going private MBO for Business Succession by acquisition of the shares from the founding owner and other existing shareholders via TOB.

Investment Theme: Through going private, the company will not be constrained by short-term stock price fluctuations, but will swiftly implement various measures to strengthen its existing businesses, such as expanding solutions for medical institutions, accelerating the development of medical malls, diversifying revenue sources, expanding the pharmacy network of dispensing pharmacies, and improving operations. At the same time, the company will innovate its business model and construct an ecosystem in order to become a leader in the comprehensive community care system, thereby transforming itself into a comprehensive healthcare company that can earn a high reputation in the capital market.

Exit Story

Date of Exit
- February 2024
Exit Pattern
- Trade sale of the entire holdings to an SPC owned by an investment fund managed by CVC Capital Partners
Points of Exit
- Post-investment, in addition to deploying several management talents, Polaris reinforced existing dispensing pharmacy business through promotion of new medical mall stores opening and acquisition of small and medium-sized stores, reformed the company’s business portfolio by executing strategic M&A and allocating management resources to the Medical Support business which has lower regulatory risk, launched new business lines and expanded its product line-up, as well as promoted DX (Digital Transformation) through the newly established Digital business (such as building a healthcare data platform, developing in-house apps for patients, opening an online pharmacy). As a result, the company fostered a distinctive business model with a stronger management foundation, achieved sustainable business growth and dramatically improved their value.
  After the sale to CVC Capital Partners, which is globally focusing on investment in healthcare industry, we believe Sogo Medical Group will further enhance its corporate value while following its existing growth strategy with the founding philosophy: “To contribute to the community and society through supporting quality medical care”.