Disciplined Acquisition, Operational Integration, and Value Creation
A Buy-and-Build Strategy Underpinned by Proprietary Origination
Hygiacura's growth strategy is built on three interconnected pillars: disciplined acquisition of founder-owned facilities management businesses, rigorous operational integration, and the realization of synergistic value through scale. This "buy-and-build" approach is a well-established institutional private equity methodology, applied here to one of the UK's most fragmented and resilient service sectors.
The strategy is designed to generate value at every stage: at acquisition, through disciplined pricing; during integration, through operational efficiency; and at maturity, through the enhanced enterprise value of the consolidated platform.
Proprietary Origination
Hygiacura engages directly with business owners to identify off-market acquisition opportunities, avoiding the competitive dynamics and inflated multiples of intermediated auction processes. This approach enables more favorable transaction terms and greater certainty of execution.
Disciplined Acquisition
Acquisitions are subject to rigorous financial and operational due diligence. Target businesses must demonstrate a minimum threshold of recurring revenue, a proven track record of profitability, and a service offering that complements the existing Hygiacura portfolio.
Operational Integration
Post-acquisition, businesses are integrated onto a centralized operational and financial platform. This includes ERP harmonization, procurement optimization, and the cross-selling of services across the combined client base, driving immediate earnings accretion.
Project Horizon: A Hypothetical Acquisition
The following is a hypothetical illustration of the Hygiacura acquisition model. It does not represent a completed transaction.
"Project Horizon" is a regional commercial cleaning and building maintenance firm based in the East Midlands. The business was established in 1998 by its founder, who is now approaching retirement and has no internal succession plan. The business serves a diversified client base of commercial property managers, NHS facilities, and local authority buildings.
Hygiacura would engage directly with the founder on a proprietary basis, structuring a transaction that provides immediate liquidity alongside a deferred earn-out component, ensuring management continuity during the transition period. Post-acquisition, the business would be integrated onto the Hygiacura platform, with back-office functions centralized and cross-selling of additional services initiated across the existing client base.
Deployment of Bond Capital
Net proceeds from the Notes are applied to four principal purposes: (1) Strategic Acquisitions — including an identified initial target at £450,000 consideration, projected to generate c. £150,000 EBITDA per annum; (2) Working Capital — supporting the operational and liquidity requirements of Hygiacura Facilities Management and the wider group; (3) Refinancing — optimising the group's balance sheet through refinancing of existing debt where appropriate; and (4) Non-Cash Consideration — Notes may be issued at their issue price as non-cash consideration in connection with acquisitions.
The buy-and-build model is designed to generate a meaningful interest-coverage margin: acquiring at a 3.0x EBITDA multiple (33% EBITDA yield) against a fixed cost of debt of 8.175% creates a structural spread that strengthens the credit profile of the Notes as the portfolio grows.
The case study presented on this page is hypothetical and illustrative only. It does not represent a completed or committed transaction. Forward-looking statements involve risk and uncertainty. For professional investors only.