Business Planning
SOVA’s team will analyze the existing sleep center (or the need for a new center) and develop a business plan, which includes financial, legal, market and operational recommendations. During this phase, we will determine the current state of the sleep center and develop a business plan to be used in securing a growing level of market share and sustained profitability. The plan will also include strategies for developing a joint venture and necessary working capital.
Approach:
SOVA will evaluate the following subject areas concerning the project in order complete the business plan:
Market Assessment
- Analyze current sleep modalities at the hospital to determine need for additional capacity
- Market share analysis (existing and potential)
- Patient in-migration and out-migration analysis
- Strategic technology considerations
- Infrastructure requirements (costs and financing)
- Market- related situational factors
Financial Assessment
- Reimbursement expectations for the sleep center
- Project cost analysis, including facility construction, start-up and operating costs
- Capital requirements
- Capital structure recommendations
- Financing recommendations (equity vs. debt)
- 5-10 year pro-forma and sensitivity analysis
- Break-even analysis
- Return-on-investment analysis
Structural Assessment
- Identify strategic partnership relationships
- Provide legal and regulatory risk guidance, which will include an evaluation of the joint venture’s compliance with federal and state laws and regulations
Operational Analysis
- Critical success factors
- Recommendations based on findings and interviews
Executive Summary and Action Plan
- Go/No-Go recommendation
Outputs: The deliverable from this phase will be a business plan that addresses and incorporates the above analysis for the project. This phase will take approximately 45 to 60 days to complete.
Fees: Should the sleep center decide to retain SOVA for subsequent phases, an Engagement Continuation Agreement will be put in place based on the needs outlined in the business plan. Fees for Phase Two and Three are often contingent upon the successful creation of a fully structured and financed sleep center.