This office has now been open for 3 weeks and we are happy to report that the return to positive revenue has exceeded our expectations. We are relaunching this listing now that we are able to bring people back to visit practices prior to placing an offer.
For the period June 10-26, 2019 vs. June 8-24, 2020, the revenue is down approximately 10%. This is with the new protocols and without one of their hygienists, who returned to work last week.
Our client who operates a modest 25 hour per week schedule has said that he could easily open another day to meet the pent-up demand. The office is now booked ahead for the month of July for both doctor and hygiene as the office enjoys the differed income resulting from the closures.
Lease/Demolition Clause: Large REITS leverage their position and will place Demolition clauses in leases. This is a reality in large urban centres. The subject building has recently undergone significant capex improvements involving a new roof, modernized AC, new elevators throughout the building and a slate of COVID-19 related improvements which run into the cost of several millions of dollars. Suffice to say the landlord has demonstrated a long term commitment to this investment and its tenants. The new owner will be negotiating additional term to satisfy the payment schedule of any investment loan. Please know that the directives of this landlord will not abide the removal of the demo clause. This said multiple banks have stated their commitment to finance this opportunity as they see very little risk in supporting the long term sustainability of a business in this building
The requisite production reports that show a demonstrated ability to return to 2019 revenues as early as July of 2020 can be shared with any parties with a demonstrated interest. There is also significant work scheduled as evidenced by the pre-determination report. A full appraisal and video content can also be provided to qualified parties.
Highlights of this practice:
- Approximately 820 patients attended the practice in the last 12 months
- Subway in the immediate area
- Significant services referred out or not elected by the owner
- Staff contracts
- Open 5 days per week with minimal evening hours
- ~15 new patients per month in the last 12 months
- The vendor wishes to make themselves available for a healthy transition
- High end professionally finished office incorporating a social distancing philosophy
Additional Purchaser/Advisor Information:
- A Virtual Tour will be provided to pre-qualified purchasers
- Interested parties should schedule a phone interview with a view to arranging a site visit.
- There is no offer deadline; Conditional offers will be presented to our client as received.
- Offers should be accompanied by a certified cheque payable to “ROI Corporation IN TRUST” equal to 10% of the offered price for the practice
- ROI Corporation will prepare all offers on our standard forms for your lawyer’s review.
- Our vendor is flexible regarding the transition period
For additional information, please contact Robert Spillane, Sales Representative.