Matogen Applied Insights (MAI) was approached by the director of a European medical company to provide a business case by modelling projections on the predicted return on investment for a new online platform aimed at connecting people and healthcare.
The prospective healthcare services site includes listings of medical professionals across a broad spectrum of specialisations, in addition to detailed information on a variety of illnesses, medication and symptoms. The site also features playlists highlighting specific procedures and conditions, medical stories featuring patient experiences, as well as community groups for particular ailments.
Business case modelling
The platform generates revenue through booking appointments with health care professionals, as well as ad clicks and sponsored content. Given the price sensitivity surrounding health care seeking behaviour, the client wanted to explore different revenue scenarios that would impact on its EV(Enterprise Value) and EBITDA (Earnings before interest, taxes, depreciation and amortisation.
The experienced MAI data science team conducted extensive research and considered a plethora of variables to construct a model representing high and low revenue scenarios. MAI was able to illustrate various projections for the next five years. Both the top-down and bottom-up approaches showed the same result (cashflows, IRR) and empowered the entrepreneur to have informed discussions with potential investors.