In August, the “Alberta Is Calling” campaign was launched targeting people to relocate to Alberta. Afterall, Alberta boasts Canada’s highest average wages and lowest taxes. ROI Corporation is excited to be part of this trend by bringing a strong practice to the market.
This well-established practice is perfect for a first time buyer who wants to invest in their own clinic. The cash earnings are sufficient to repay the debt, manage increased interest rates and still enable an owner-operator to earn approximately $400,000 annually. It is less than an hour from Edmonton and less than 2.5 hours from Calgary. The city is in process of expanding and evidence of this is the upgrading of city’s infrastructure to accommodate growth in the next three to five years.
Our client is an Investor Dentist™ who has not practiced in the office. The choice to sell is simply for downsizing purposes. Dentist to patient ratio is above average given that there are 6 dental offices in a community of just under 15,000 people. The practice is surrounded by residential areas as well as easy access to green spaces and other outdoor activities. The area is well-connected for all modes of transportation, providing endless opportunities for a strong work-life balance.
Currently, the clinic is open Monday to Thursday from 8:00am to 4:30pm. A new owner can expand hours on Fridays and Saturdays as well as adding a longer evening or two. With additional hours, clinic revenue can grow by accepting younger patients (as previous owner did not treat children). Targeting this demographic would be an excellent decision especially with the first stage of the federal government’s plan to deliver dental coverage for families with income under $90,000, with children under 12. Opening the clinic to NIHB patients also offers a substantial upside opportunity. Ortho and Invisalign are further areas where expansion for the practice can occur along with retaining numerous endo cases out and offering sedation. The original owner still works as a part time associate and will continue to do so if required.
Presently, there are 2 hygienists each working 16 hours per week. There are 2 assistants and a new receptionist who replaced the spouse of the previous owner. A well-trained team is in place for a new owner to take over. The clinic itself spans just under 3,000 square feet. A strong lease is in place with renewals up to 2035 and no demolition clause. The opportunity to purchase the real estate is also a possibility.
There are approximately 1,100 active patients with 70% of the patients coming every 6 months for recalls and over 80% have comprehensive insurance. This is a non-assignment practice with exceptions made only for a small group of long-time patients. Fees are according to fee guide except for crowns, bridges and implants which are above fee guide. A/R collection is extremely strong.
Highlights of this practice include:
- 6 well-equipped operatories
- Practice established in the early 1980s
- 15-20 new patients per month plus 20-25 emergencies per month
- Non-assignment office with a few exceptions made for existing patients
- Excellent collection policies as evidenced by low A/R
- Current lease term until 2035 with purchasing the building being an option
- Sirona pan x-ray with digital software
Additional Purchaser/Advisor Information:
- A Practice Profile will be provided within 48 hours of your request
- A Confidential Open (by appointment only) will be held on Sunday, December 4, 2022
- The Appraisal will be distributed on Tuesday, December 6, 2022
- The Offer Request Form must be submitted 48 hours prior to the Offer deadline
- Offers must be submitted on or before 5pm on Friday, December 16, 2022
- 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 looking to close by February 28, 2023, but is flexible