Nelson Advisors FAQ's

Q: What is Nelson Advisors’ core specialisation?

A: Nelson Advisors is exclusively focused on Healthcare Technology (HealthTech). Unlike generalist investment banks, they do not cover broader healthcare services (like nursing homes) or general tech. Their specific niches include:

Digital Health & Telehealth

Healthcare AI & Analytics

Health IT & SaaS

MedTech & Connected Devices

Life Sciences Software

Q: What makes Nelson Advisors different from other investment banks?

A: Their primary differentiator is their "Founders for Founders" DNA. The firm’s partners (eg. Lloyd Price, Paul Hemings) are former HealthTech entrepreneurs who have built, scaled and successfully exited their own companies to public (FTSE) and private buyers.

This operational experience allows them to understand the founder’s journey better than purely financial advisors.

Q: Do you invest in HealthTech, MedTech, Digital Health companies?

A: No, Nelson Advisors does not invest in HealthTech, MedTech, Digital Health companies. We advise companies on their fundraises, helping support their investment rounds from funds, individuals and corporates, typically $10M or £10M and above.

Q: Where are you located and where do you operate?

A: The firm is headquartered in London, UK, but operates globally. They frequently manage cross-border deals involving clients and buyers across the UK, Europe, and North America.

Q: What specific services do you offer?

A: Sell-Side M&A: Advising founders and boards on selling their company to strategic acquirers or Private Equity.

Buy-Side M&A: Helping corporates and investors identify and acquire targets (including roll-up strategies).

Strategic Advisory: Their "Build, Buy, Partner, Sell" framework helps companies decide the best route to maximise shareholder value before a transaction occurs.

Divestitures: Assisting larger corporates in carving out non-core HealthTech assets.

Q: What is your typical client profile?

A: Nelson Advisors typically works with:

Scale-ups to Mid-Cap companies: Often Venture Capital or Private Equity-backed.

 Founders: Seeking a partial or full exit.

Corporates: Looking to divest non-core technology assets.

Note: While they work with high-growth startups, they typically focus on companies with established intellectual property (IP) or recurring revenue, rather than pre-revenue concepts.

Q: Do you work with unprofitable companies?

A: Yes, provided there is high growth, strong IP, or strategic value (e.g., proprietary AI algorithms). In HealthTech, "pre-profit" exits are common if the technology fills a strategic gap for a buyer.

Q: How are HealthTech companies currently valued?

A: According to Nelson Advisors' recent market analysis, valuations in 2024/2025 typically fall into these ranges:

Standard HealthTech: 4x – 6x Revenue (Enterprise Value).

High-Innovation (AI/Analytics): 6x – 8x+ Revenue. Companies with proprietary AI or proven cost-saving outcomes for payers command a premium.

Profitable Firms: 10x – 14x EBITDA.

Note: Startups without clear differentiation or profitability paths may see compression toward 3x – 4x Revenue.

Q: What are buyers looking for right now?

A: Buyers are currently prioritizing a "flight to quality." Key drivers for a premium valuation include:

Proprietary AI: Not just a wrapper around ChatGPT, but deep, defensible IP.

Recurring Revenue: High percentage of SaaS/subscription revenue.

Clinical Evidence: Proof that the technology actually improves patient outcomes or reduces costs for health systems.

Q: How long does the M&A process take?

A: A typical sell-side process takes 6 to 9 months.

 Preparation (1-2 months): Building the financial model, Information Memorandum (IM), and buyer list.

Marketing (2-3 months): Reaching out to buyers and managing management presentations.

Due Diligence & Closing (2-4 months): Negotiating the LOI (Letter of Intent), legal review, and final signing.

Q: How do you charge for your services?

A: Like most boutique investment banks, Nelson Advisors typically employs a standard fee structure:

Retainer: A monthly fee to cover preparation and active marketing efforts.

Success Fee: A percentage of the final transaction value, paid only upon successful closing. (Retainers are often deductible from the success fee).

Q: What is the "Build, Buy, Partner, Sell" framework?

A: This is Nelson Advisors’ strategic approach. Instead of rushing to sell, they first assess if you should:

Build: Continue organic growth to increase valuation.

Buy: Acquire a smaller competitor to add capabilities.

Partner: Sign a commercial partnership to validate the model.

Sell: Go to market now because the timing is optimal.

To discuss how Nelson Advisors can help your HealthTech, MedTech, Health AI or Digital Health company, please email [email protected]