Functional Gut Clinic

Date:October 2022
Project:Joint Venture Buyout
Role:Lead advisor


Forward advises Functional Gut Clinic on buyout of 50% joint venture partner

Forward Corporate Finance is delighted to have advised Alimentary Innervations (trading as the Functional Gut Clinic) on its buyout of the other 50% in Functional Gut Diagnostics from its US joint venture partner Commonwealth Diagnostics Inc (“CDI”). The transaction brings the diagnostics business into the group as a 100% subsidiary of the Functional Gut Clinic.


The Functional Gut Clinic is one of the leading gastrointestinal physiology service providers in the UK. Founded in 2014 by Dr. Anthony Hobson, the company provides testing services to patients to assist in the diagnosis of symptoms relating to gastro-intestinal problems. Requiring referral from a GP or specialist, the company works with 17 NHS trusts across the UK, as well as a number of private healthcare providers such as Nuffield, Spire and the Cleveland Clinic London. Patients access tests either at the company’s own clinics in Cambridge, London and Manchester, via satellite clinics at NHS locations around the country, or in some cases remotely via postal tests.


The main business of its subsidiary, Functional Gut Diagnostics, is the distribution of hydrogen and methane breath tests. With over 90% sent via post in specially designed packages, the results from these tests can be used to help GPs or specialist clinicians in the diagnosis of a range of gut related problems. The tests are based on technology developed by CDI, and the Functional Gut Clinic will continue to pay a royalty as part of an ongoing licence.


Forward worked with Dr. Hobson to negotiate a deal with CDI, and to raise the money to fund the acquisition. Funding was provided by leading investment management company Triple Point with Ellis Diamanti and Morgan Schuler leading the transaction for Triple Point’s Direct Lending Team.


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