Gibraltar Provides $6MM Growth Capital to Company Innovating for the Future of Surgery

Gibraltar prides itself on helping companies and their private equity sponsors seize opportunities when they arise, with enough capital to meet current needs and boost company performance to the next level.

Gibraltar recently offered its lending services to a sponsored company with a stake in the future of healthcare.

Aging Population Increases Demands on Surgery Centers

The aging of the U.S. population will result in significant growth in the demand for surgical services. According to an article in the Annals of Surgery authored by Etzioni, Liu, Maggard and Ko, the fastest growing segment of the population consists of individuals over the age of 65. The authors’ analysis indicates that this will create significant increases in the surgical workload over the next two decades—14%-47% in various surgical fields.

The researchers concluded that strategies are needed to help surgeons manage an increased workload without sacrificing quality of care.

Gibraltar’s Client Offers Solutions

Gibraltar’s new client provides customized service bundles to hospitals and ambulatory surgical centers to support minimally invasive surgeries (endoscopic and laparoscopic). The bundles can include technical staff, instrumentation, other surgical supplies, reporting, repairs and maintenance, cleaning and sterile processing.

The Company aims to improve operating room management by increasing efficiency and decreasing operating room turnaround time. By delivering their customized service bundles for a fixed fee per procedure, they also help turn the expensive fixed costs of labor, personnel and equipment into a consolidated and potentially lower variable cost for the facility.

Gibraltar’s $6MM Credit Facility Will Aid Rapid Growth

A large demand for surgical solutions is driving rapid growth for the Company. They are looking to expand their services and products and scale their operations to the anticipated future demand.

Gibraltar was able to deliver more liquidity than traditional lending sources to fuel this expansion by utilizing inventory and accounts receivable as collateral for a $6 million asset-based line of credit.

Gibraltar’s ability to deliver liquidity, flexibility and quick results to companies with significant growth goals has made the lender a preferred partner of private equity groups. According to Devin Scott, vice president at one PE firm, Diversis, “We know that Gibraltar is good at understanding a company’s story and the drivers of future growth.”

The value Gibraltar brings to sponsored companies includes no minimum equity requirements, best-in-class service, borrowing base creativity and patience. At Gibraltar, the solid relationships built with financial industry partners have contributed significantly to significant recent growth and success.

 

Gibraltar offers credit facility capacity between $2 million and $20 million to serve mid-market businesses and their unique needs. Get more information about our private equity partnerships and read case studies of some of the more than 200 companies Gibraltar has helped so far. Then set up a consultation today with our expert sales team.

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