Alvarez & Marsal advises on sale of Babylon's UK operations

Alvarez & Marsal (A&M) served as the advisor for the sale of Babylon’s UK division in August 2023. The transaction followed significant financial strain for the global digital healthcare provider, which faced a monthly cash burn rate of $15 million despite generating over $1 billion in annual turnover.

Babylon, previously listed on the NYSE, required approximately $200 million in funding to reach a break-even point but failed to secure the capital through prior market efforts. A&M was engaged to conduct a forecast review, lead a fundraising process, and advise the board on contingency planning.

The firm assisted management in navigating a group and UK-specific sales process, engaging both trade and special situations investors. The advisory engagement concluded with the sale of the UK business to eMed LLC via a pre-packaged insolvency process.