Purchasing a practice of calibre, is a rare opportunity. As such, we will be handling inquiries and prospective buyers in a very specific manner. ROI Corporation is proud to represent this exceptional practice. Our client can continue to stay on as an associate.
The business appraisal community embraces certain pillars of evaluation as sacred and empirical. Often rules of thumb such as % of gross or a multiple of EBITDA do not reflect the true value of an exceptionally well-run practice. These overly simplistic measures cannot adjust for fluctuations and changes.
Appraising a dental office requires experience and expertise. ROI Corporation has been appraising and selling dental offices for over 45 years. Our practice appraisals are measured on cash flow, not on “labour” value calculations that are subject to large and wide-ranging opinion. In only using free cash, we also apply a substantially lower earnings multiple than those who use the EBITDA formula, but the net result is sound and distinctly more static.
We will not be hosting an Open or Webinar to share details of this office. Rather, interested buyers will have to complete a Pre-Screening Process which will include a one on one meeting, either in person or via zoom, during which the current ownership, the location and all the sensitive financial information will be shared. Private showings will be arranged for interested parties.
Buyers are required to follow the below pre-screening and qualification process. Protecting our client’s confidentiality is paramount to us.
The Pre-Screening Process:
- Upon receiving your request for more information, a credit application will be sent for your completion
- Interested buyers will have a private one on one interview with Jackie Joachim, Chief Operating Officer & Sales Representative, and must bring this completed application with them
- Those attending must also bring confirmation from their lender supporting capability to qualify for financing at this level. We are aware that a lender cannot give a blanket authorization but can at least provide comfort in allowing us to know this transaction can be completed.
Highlights of this exceptional practice include:
- Established office since 2002
- Strong EBIDTA: ~$997,800
- 40 new patients per month
- 7 hygienists producing ~115 hours of hygiene per week; generating 37% of gross
- 7 well-equipped operatories
- Implementation of an infection control compliance system
- Associate Driven: 4 Associates with owner representing less than 10% of gross production
- Excellent location with high visibility and ample free parking
- The office is within a stand-alone premise occupying 3,400 square feet over two floors. Continued growth in the immediate area
- Excellent lease – term and renewals until 2030, no demolition clause
- Office Hours: Monday to Saturday for a total of 67 hours; Opportunity for expansion of hours
- 40% of patients visit every 3-4 months; 50% of patients visit every 6-9 months
- 95% of the patients live/work within 5km of the office
- 85% of the patients have excellent insurance
- Over 3,000 patients attend the practice
Additional Purchaser/Advisor Information:
- Qualified buyers will be provided with an appraisal for key advisors and lender to review
- There is no offer deadline; offers will be presented to our vendor as received
- Your offer must be accompanied by a 10% deposit payable to “ROI CORPORATION IN TRUST”
- Our client is flexible and willing to stay in current capacity for a mutually acceptable transition period
- Our client prefers a closing date of January 31st, 2021 but is flexible