Sell your group of practices with MediEstates
Once you have built your business empire, the time will arise when you need to plan your exit strategy and sell your Group for a deal structured on your terms with the right price.
We have collected a number of success stories where multi-site practice owners have sold their Group for Multi-million pound deals to both corporate buyers and multi-site operators, with interest from Private Equity looking for an entry point into the UK dental market.
Whilst planning this exit strategy, we will continue to grow the existing portfolio ensure the Group EBITDA is at its maximum level when the deal is completed.
Large Devon group of 4 practices – sold to a corporate buyer
The two partners approached MediEstates after making the decision together that the timing was right to dispose of their group of four mixed dental practices in which each had its own NHS contract and a combined 22 surgeries across the group. Given the buoyancy of the dental market and in particular large demand from multi-site owners and corporate buyers we were able to achieve an agreed sale price of £5,000,000, which was 6.4% above market valuation and a multiple of EBITDA of x8.25. Following acceptance of the offer from the transaction was completed in just under four and a half months.
An excellent result for the two group owners for whom passing the group to the right buyer was just as important as the deal price that was agreed. Although the two partners were both in agreement that the timing was right to sell, they each had very different individual requirements post sale that MediEstates were able to build into the deal structure.
Group details are:
Location – Devonshire
Turnover - £3,808,098
Computerized – Yes, SOE
Number of sites – 4
Number of surgeries – 22
Type – Mixed
Property – Leasehold
Sale Price - £5,000,000
NHS Group in Lincolnshire, located over 2 sites – sold to an independent buyer– achieving nearly 10% more than the asking price
This 2 site business is predominantly an NHS group with an income of around £868,000 per annum, generated over two sites both of which were located in market towns in Lincolnshire just 15 minutes apart. The practices are fully computerized, and freeholds are owned by the Principal Dentists. Asking price for the group was £1,4000,000 and after careful consideration of all interest received and offers submitted the eventual sale price achieved was £1,525,000, substantially higher than the proposed asking price. To the delight of the practice partners the practice transition went smoothly and they are enjoying the use of the time in other areas now that their work responsibilities have been reduced significantly.
Location – Lincolnshire
Turnover - £867,856
Computerized – Yes (Software of Excellence)
Sites – 2
Surgeries – 6
Type – NHS
Property – Freehold
Asking price - £1,400,00
Sale Price - £1,525,000
Dual Site in Surrey, located over 2 sites – sold to a corporate buyer
This dual site had 8 surgeries combined over 2 practices and mainly offers private dental treatments. Group turnover was just over £2,000,000 which generated a valuation of just over £5,000,000. Price achieved on completion was £5,000,000, just under x8 multiple of EBITDA and the property was offered on a leasehold basis. The practice is fully computerized using SOE practice management software. Owners were delighted with the result of the sale and are looking forward to fulfilling their retirement plans, it was very important to the exiting Principal Dentist that he regain some of his time to spend with his family and children whilst still maintaining some of his clinical duties by working after completion on a part time basis, which was given consideration throughout the marketing period and whilst the deal structure negotiations were completed.
Group details are:
Location – Surrey
Turnover - £2,103,410
Computerized – Yes, SOE
Sites – 2
Surgeries – 8
Type – Predominately private
Property – Leasehold
Sale Price – £5,000,000
It is now more imperative than ever before that owners of group practices like the ones above consider what steps need to be taken to maximise their profit in order to make substantial gains to their EBITDA and ultimately the value of their business. MediEstates are working closely with owners of group practices on this whether they are moving forward with a sale now or just planning ahead for an eventual sale in years to come.
If you are looking to acquire another practice, or several practices, please reach out to the MediEstates team who will be delighted to help you secure the best practice for your group. Equally, if you are a small group looking to secure the best exit, we work with a multitude of buyers including all the corporates present in the UK market, as well as a number of Private Equity investors, looking to enter the UK market, through the Henry Schein worldwide connections.
If you are interested in finding out more, please contact the MediEstates on 01332 321693, info@mediestates.co.uk or www.mediholdings.co.uk
