Should I Raise Private Equity Funding for My Healthcare Business?

An Overview Of When Private Equity Works For Healthcare Businesses

If you’re a UK healthcare founder with a growing business, you may be asking yourself: “Should I raise private equity funding?” It’s a critical question, and the right decision depends on your goals, your growth plans, and whether the business is ready for a new kind of partnership.

At Eclipse Corporate Finance, we help healthcare founders generating £1m–£5m EBITDA explore private equity investment – from preparation and structuring to negotiation and completion. We’ve supported clients across clinical services, care, digital health and community healthcare in navigating these conversations confidently.

1. Why Consider Private Equity?

Private equity can be a powerful option if you’re looking to:

• Accelerate growth – fund expansion, acquisitions, or new sites

• De-risk your position – realise some value now

• Improve governance – bring in sector expertise and commercial rigour

• Support leadership transitions – if you plan to step back gradually

There’s a growing pool of funds focused on UK healthcare, particularly for founder-led businesses with solid infrastructure and scalable models.

2. When PE Might Not Be Right for You

Private equity may not be the right route if:

• You’re looking for a clean break and full exit

• You don’t want any outside input in decision-making

• The business isn’t yet ready - for example, under £1m EBITDA, unstable margins, or limited management depth

In those cases, a full trade sale or structured exit may be more appropriate.

3. When You Should Seriously Consider It

It’s worth exploring private equity if:

• You're generating sustainable EBITDA of £1m–£5m

• You have 2–3+ years of solid, clean financials

• Compliance, CQC (or other regulatory) standing is strong

• There’s a credible second-tier management team

• The business model is scalable with a clear growth story

These are the types of businesses that Eclipse regularly helps prepare for successful PE engagement.

4. What Private Equity Looks For

Most PE funds targeting the UK healthcare sector focus on:

• Predictable or recurring revenue

• Strong and sustainable margins

• Low reliance on the founder

• Clear opportunities for scale – new geographies, services, or contracts

• Clinical quality – a focus on clinical governance and outcomes

Being able to demonstrate these attributes is key to attracting and negotiating with the right investors.

5. How Raising Private Equity Funding Works

Here’s what a typical process looks like:

1. Preparation – Clarify your goals, clean up your numbers, build a forecast

2. Targeted approach – Shortlist the right funds under NDA

3. Negotiation – Discuss valuation, structure, and control

4. Completion – Due diligence, legal process, deal close

In Eclipse-advised PE deals, founders typically receive 40–75% of value upfront, retain a meaningful equity stake, and exit fully over 3–5 years.

6. Why Eclipse?

We’re not a generalist M&A firm — we’re focused solely on healthcare, and we understand the unique dynamics of bringing in private equity. We help you:

• Benchmark valuation ranges

• Prepare your business for investor scrutiny

• Navigate the subtleties of reinvestment, board control, and exit strategy

• Run a process that protects value and keeps you in control

If you’re asking “Should I raise PE?”, we’ll help you answer it — with honest, founder-first advice.

Key Takeaways

Question	What to Consider
Why raise PE funding?	Growth capital, partial exit, governance
When to avoid?	You want a clean break or business isn’t ready
When to explore?	£1m+ EBITDA, clean compliance, scalable model
What investors look for	Revenue quality, management, growth story
Deal structure	40–75% upfront, equity rollover realised in 3–5 years
Why Eclipse	Healthcare specialists with PE experience and founder focus

Final Thought

Raising private equity can transform the future of your business, but only if it fits your goals and only if the process is handled well. Whether you’re looking to scale, take some value off the table, or plan for succession, we can help you navigate the process with confidence.

Please get in touch to discuss how private equity can work for healthcare businesses.