Max Healthcare Institute Limited (BSE:543220) is evaluating acquisition opportunities in tier-2 and tier-3 cities. Max Healthcare is evaluating acquisition opportunities in tier-2 and tier-3 cities to be largely funded through internal accruals and debt, the company's top executive said. ?We continue to be on an inorganic path; we see great opportunity in tier-2 and tier-3 cities,?

said Abhay Soi, Chairman and Managing Director of Max Healthcare, in an interview with ET. ?We have excess cash on our books, which means we are debt free, we continue to generate cash, with the latest two acquisitions even more (cash generation),? Soi added.

Soi said there 20-21 tier-2 and tier-3 cities across India, where he intends to go. ?We presently have a presence in Mohali (Chandigarh), Bathinda, Dehradun, and now we have added Lucknow and Nagpur. We continue to have a focus on tier-2 and tier-3 cities,?

he said. ?There are lots on the table, we continue to look and evaluate. Even these two acquisitions (Lucknow and Nagpur) were in discussions for a long time, each one of these has its own timelines,?

Soi said. If there are compelling acquisition opportunities, Max Healthcare is comfortable to raise debt funding of up to 2.5 times the earnings before interest, tax, depreciation, and amortisation (EBITDA), he said. Soi said he doesn't see any equity requirement, unless there is a large compelling acquisition opportunity.

?We have quite a bit of elbow room (for acquisitions)?.