Investor Relations

Partnerships: Identification of Principal Stakeholders & Partners

The Burnratty Investment Group has partnered with XRP Healthcare Africa and will continue to partner with the private sector, the Government of Uganda, the Ministry of Health, and health professional associations in the realization of exponential growth to ensure the rapid consolidation of this highly fragmented health sector. The 1995 Constitution of the Republic of Uganda coupled with the National Development Plan, Uganda’s Vision 2040 and the Poverty Eradication Plan highlighted in the National Resistance Movement’s manifesto provide room for growth and expansion, making the political, economic, and social leadership principal stakeholders critical partners in ensuring the success of The Burnratty Investment Group in Uganda. Such entities include the Ministry of Health, the Ministry of Education and Sports, district leaders, regional health committees, regional and district health officials, community health committees, district councils, local council leaders, civil society organizations including community and faith-based organizations, and international donors and participants including the IMF, the World Bank, the WHO, UNICEF, and a multitude of non-profit organizations.

Investment Standards

The Burnratty Investment Group aims to consolidate the health sector in Uganda by acquiring businesses with a high profit margin of 20-40% at 3-5X EBITDA and growing the revenue at an annual rate of 65%. All investments we seek to make shall have an IRR of 50-60%.

Financial data from a target acquisition with only 80 beds showed a steady 73% growth in revenue, from UGX15.5 billion in 2014 to UGX26.7 billion in 2017. As a result, the hospital recovered from a loss of UGX1.5 billion in 2014, making its first profit of UGX2.1 billion in 2016. In 2017, profits increased by 136% to UGX5 billion. With this knowledge, it is clear that the vast area of consolidation available in Uganda makes it possible for The Burnratty Investment Group to attain a dominant market share, leading to high profitability.

Our goal is to acquire established health tech and healthcare businesses, merge them, and integrate them into The Burnratty Investment Group, aiming for a rapid, exponential growth towards a successful exit. The target is to make at least 10 acquisitions per month with a minimum value of $30 million USD. This first milestone alone will enable debt servicing of $3 billion USD in the next ten years and creates room for exponential growth to sustain financial projections of attaining over a $7 billion USD valuation by 2027. This means that investors, financiers, and partners should expect a return on their investment from the initial investment made to enable the Group to reach its first three acquisitions.

THE BURNRATTY INVESTMENT GROUP’S SUCCESSES

In line with our mission which is to consolidate and dominate the highly fragmented Ugandan health sector through the merger and acquisition of small and medium sized stable and profitable businesses that meet our investment standards. From day one, unlike businesses like Nakasero Hospital, AAR Healthcare and International Hospital Kampala, that grow geometrically by building one hospital at a time. We shall employ mergers and acquisitions as our classical strategy to consolidate the Ugandan healthcare sector meaning that from day one, as soon as we make our first acquisition, we are profitable and are in business. This is our core operating strategy and it removes the risk of having to build a hospital from scratch and the pain of looking for customers and employees followed by the pursuit of bureaucratic accreditation, inspection and approval processes which are followed by redundant periods before the hospital acquires profitability which often takes many years.

We greatly believe that litigation is a legitimate business tool and in order to ensure the success of all our deals, our board and management is law suit aware and shall besides various avenues like debt financing, seller financing, bank loans, equity and venture capital shall use litigation on potential acquisitions.

Our investment group is possessed with a dream and vision that seeks to deliver swift and quality healthcare with goals to become the leading healthcare brand in the African region by 2027, the largest healthcare service deliverer in Africa by 2026 generating a revenue of half a billion dollars by 2026 and attaining a billion-dollar valuation by 2026 with key principles and core values that we believe in to engage and attain exponential growth as fast as humanly possible in a legal, moral and ethical manner.

Our investment group recognizes the good talent we have, and shall work to add on more while retaining that which we already possess in more ways inclusive of offering a competitive salary, but also educating and positively impacting them through training to better impact their community while expanding the reach, quality and delivery of our services and presence in the region through our fast-paced company culture and that values all our partners and employees’ contributions.

ACQUISITION STRATEGY RELATING TO NON-CURRENT ASSETS

During our initial stage of acquisitions, we shall not acquire non-current assets like, land, buildings but shall rent the property with the payments directed to the seller as a part of our seller financing model. Property like machinery and equipment shall be included as a part of our EBITDA valuation and these assets and the cost of such assets shall be spread all over the length of our possession of the same. For intangible assets like reputation and goodwill of the business or seller, the seller shall be maintained for a period of at-least 9 months under which period, we shall groom a successor and transfer the licenses of the acquired business to our investment group. Existing workers shall undergo further training to ensure that they fit our high-quality operational standards and fast paced company culture to guarantee swift and quality healthcare. The branding of the acquired business shall become property of our investment group and the company shall be fully merged and integrated into our investment group with Burnratty Healthcare employed as our brand name.

ACQUISITION STRATEGY RELATING TO CURRENT ASSETS

All our target acquisitions current assets shall be reviewed in the due diligence process by our board members and top tier and international legal and accounting firms. Items like the company's balance sheet, and other required financial statements completed for each year for the business’ past five years shall be reviewed to ensure that the cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets, are sufficient to fund the day-to-day business operations and to cater for the ongoing operating expenses including debt servicing.

NON-CURRENT ASSETS - PROPOSED

As our investment group’s focus in dominating and consolidating the healthcare sector is service based, we shall require minimal to no use of fixed assets. The Burnratty Investment Group shall own all the copyright, trademarks, client lists, and the goodwill through our merger and acquisition of the given businesses making them a part of our intangible long-term assets. Furthermore, our investment group shall own the copyright, trademarks and patents from the inventions made by our employees, researchers, innovators and creators. This shall be coupled with the goodwill based off our improved service delivery, swift and quality healthcare based on eliminating redundant operations and dominating the entire market chain.

RISK MANAGEMENT AND SUCCESSION PLANNING

We shall cultivate a pipeline of talent and invest in the ongoing development of our leaders while regularly monitoring and assessing our leadership bench. We shall intentionally identify and create thorough development strategies for all senior executives and monitor the progress of our potential candidates i.e., those that have demonstrated a strong fit with the company culture and a deep understanding of front-line issues over several years.

INVESTORS BENEFITS & TIMELINES

  • Dividends to our investors shall be issued on day one, every month until our exit as a part of our working and operational model.
  • Within the next 3-5 years, we shall exit through acquisition by a larger entity or an IPO, whichever yields the most benefits to our investors, partners and shareholders.

PROJECT TIMELINE

This section provides an overview of the key planning activities to be completed.

KEY PROJECT DATES

Design phase

  • A - Project documentations, market survey, vision, purpose and scope — Scenario completed.
  • B - Establishment of the board of directors, dream team — Scenario completed.
  • C - Incorporation of the Burnratty Investment Group - 1st Acquisition —Scenario Pending.

DR

  • Phase One — First 30 acquisitions.
  • Phase Two - Second 100 acquisitions. Transformation and Operational Facilities.
  • Phase Three — Closed on at-least 500 acquisitions.
  • Phase Four - Acquired 10000 acquisitions in multiple geographies.
  • Phase Five - Exit implementation. (Within 3 - 5 years)