A hospital-private equity deal is always in the works in India. Entrepreneurs prefer to buy, not build. For obvious reasons. Borrowing is limited for acquisitions, owners need equity financing. Why not. A mid-to-large size hospital is a 15-20 year business, yet it’s being grown with funds on 5 to 8-year exit plans. It’s a necessary evil.
By these measures, if Manipal Group CEO Ranjan Pai has been looking at every hospital worth buying in India in recent years, it’s understandable. Why hasn’t he closed any deal is the million dollar question. For Fortis Healthcare, last year, he made three bids but eventually lost to IHH Healthcare Bhd of Malaysia.