Ortho Solutions secures GBP2 million from IGF to develop enhanced surgical procedures
Ortho Solutions, a specialist orthopaedic design manufacturer, has secured a GBP2 million funding facility from Independent Growth Finance (IGF) to develop a new range of innovative medical solutions.
Founded in 2001, the privately-owned Essex based manufacturer supplies NHS and private hospitals throughout the UK with implant systems used in foot and ankle surgery.
The company required additional funding to support the development of new ankle fracture and foot plating systems. New systems that are aimed at improving effectiveness of specialist foot and ankle surgical procedures. However, it had reached its existing asset-based lending (ABL) facility limit of GBP750,000. Despite having significant inventory that makes it an ideal candidate for increased ABL.
The company approached PricewaterhouseCoopers (PwC) to help find a new finance partner that understood the opportunity ahead and IGF topped the shortlist of alternative funders.
Ortho Solutions offers a unique service due to its dedicated focus on the needs of foot and ankle clinicians and their patients. This makes it one of a small number of UK companies to partner with specialist UK surgeons in developing the next generation of innovative solutions that will them get their patients back on their feet. Also, as part of its ongoing commitment to the specialist surgical training, Ortho Solutions continues to support a number of professional education events.
Mike Thompson, managing director at Ortho Solutions, says: “As a foot and ankle specialist company, Ortho Solutions is uniquely placed to champion the creation of new technologies and products. To continue doing this we needed to expand our product development pipeline, but found it challenging to grow without additional financial headroom. We reached out to PwC to find a finance partner that supported our vision and would also grow with us. IGF was selected due to the favourable terms offered and a professional and enthusiastic team.”
Having previously utilised ABL due to its large book of clients, Ortho Solutions approached IGF with long-term plans. It needed a finance solution that offered flexibility and the ability to grow. IGF was able to finance an additional GBP1.25 million facility, taking the total funding to GBP2 million. This allowed the initial product development, as well as ongoing growth within the business as both clients and orders increased.
Thompson, says: “It’s so rewarding to work alongside surgeons in developing solutions that truly support them and hopefully improve outcomes for their patients. As a result of IGF’s funding, we are progressing our developments and aim to launch them in 2020. The increased facility has provided us with the opportunity to reach a major milestone and strengthen our position in a competitive market. In providing the funding we needed, it’s clear IGF understood the lasting impact our work has. The team had the expertise to address any concerns quickly, with a high-level of professionalism, resulting in a favourable outcome.”
Jeff Greenfield, ABL director, IGF, adds: “For some lenders, increasing an ABL facility by over 160 percent raises immediate red flags. But we go into every deal with the aim of fully understanding the reason for the funding. By taking the time to ask the right questions we soon realised Ortho Solutions had a loyal customer base and significant inventory holding. As a result, we were able to increase the funding to meet their immediate needs. Now, the more they grow the more ABL funding we will be able to offer helping, them move closer to their current, and future, business goals.”