Introduction
MediPay Holdings Pty Ltd (“MediPay”) provides specialised payment plan solutions for patients undergoing medical, dental, and cosmetic procedures across Australia. The company offers a straightforward online application process, aiming for rapid approval times (often within 60 minutes) and transparent fee structures. By paying practitioners directly, MediPay sought to simplify the financing process for both patients and clinics, enabling more individuals to access necessary and desired treatments. A key objective for MediPay was to develop a profitable finance product and establish a strong, reliable market presence in the healthcare finance sector.
The Problem
In early 2024, MediPay faced considerable challenges. The business was struggling to gain significant traction in the market, primarily due to difficulties in its sales and marketing efforts which impacted customer acquisition and overall growth. This situation posed a significant threat to the company’s continuity and shareholder value. The existing management had also encountered difficulties in developing a consistently profitable finance product for its target industries. The company required a strategic partner with the capability to support business growth and a financial restructuring to ensure its viability and future expansion. The company’s ongoing operations required a significant intervention to ensure its continued viability.
Our Approach
Greenwich, as the major shareholder in MediPay, took proactive steps to address the challenges. Recognising the need for a revised strategy and operational support, Greenwich actively sought a suitable partner to inject capital and provide expertise, particularly in sales and marketing.
Greenwich Advisory acted as MediPay’s corporate advisor throughout this period. Key aspects of the approach included:
01
Identifying a Strategic Partner
Greenwich identified Elevare Pay Easy Pty Ltd (“Elepay”), a financial services provider with strong marketing expertise and experience in pay-later solutions (having provided close to $150 million of finance to property owners since 2019), as a suitable partner. This identification was crucial to address the sales and marketing deficiencies.
02
Negotiating a Restructure and Partnership
A commercial agreement was reached involving MediPay, Greenwich, and the directors, which was contingent on Greenwich and Elepay refinancing the business. This agreement also facilitated the transfer of certain assets and employees from a related entity to MediPay, aiming to streamline operations and support the new strategic direction.
03
Structuring a Joint Venture
Greenwich and Elepay entered into a joint venture agreement to refinance and support MediPay. The confidential terms of this agreement established a framework for future funding and operational support. This included provisions for Elepay to contribute to MediPay’s operational funding over an agreed period through a convertible instrument. Existing bridging finance provided by Greenwich and Elepay was also converted into similar convertible instruments. Furthermore, service agreements were established for Elepay to provide sales, marketing, and business development support, with Greenwich providing finance and warehouse management support.
04
Leveraging Relationships
Greenwich utilised its existing relationships and market knowledge to secure the partnership with Elepay, which was crucial for the recapitalisation and strategic reorientation effort.
Outcome
The recapitalisation of MediPay through the joint venture between Greenwich and Elepay has placed the company in a substantially better position.
- Successful Recapitalisation: The joint venture secured the necessary funding and operational support to stabilise MediPay and capitalise its future growth. This addressed the critical business challenges and preserved value for shareholders.
- Enhanced Operational Capabilities:Through the service agreements, MediPay gained access to Elepay’s sales and marketing expertise and Greenwich’s finance and warehouse management support. Since the new arrangements were put in place, this has led to operational highlights such as the launch of the MediPay Media Hub, onboarding a significant number of new practices, finalising an exclusive agreement with a national dental practice, updating pricing structures, and improving automation in loan approval processes. These initiatives directly addressed the previous sales and marketing weaknesses.
- Positioned for Growth: The successful recapitalisation underpins MediPay’s ability to realise its forecasted growth. The company is now better equipped to refine its product offerings, expand its distribution, and work towards becoming a leader in providing finance solutions for the medical and dental sectors.
This strategic intervention, led by Greenwich Advisory, has provided MediPay with a clear path forward, combining financial stability with enhanced operational and marketing capabilities to pursue its growth objectives.
Achieve Your Growth Objectives with Greenwich Advisory
Is your business navigating a period of change, seeking to enhance market penetration, or requiring strategic financial restructuring? The MediPay case study illustrates Greenwich Advisory’s capability in identifying strategic partners, structuring effective joint ventures, and providing crucial operational and financial support to drive businesses towards their growth potential. Our expertise in corporate advisory, coupled with a deep understanding of various market sectors, allows us to deliver tailored solutions that address specific challenges and unlock opportunities.
Whether you are looking to recapitalise, forge strategic partnerships, or refine your sales and marketing strategies, our experienced team is dedicated to helping you achieve your commercial objectives.
Contact Greenwich Advisory today to explore how we can assist your business in its next phase of development and success.
