Practices For Sale

Ref# 5036

MANITOBA

NEW asking prices – as of July 18^th, 2024:

• Practice: 20% lower @ $2,800,000 – Reduced from $3,500,000
• Property: 16.6% lower @ $1,000,000 – Reduced from $1,200,000

The practice is ideally suited for the innovative Investor Dentist™.

2024 estimated Free Cash Flow (FCF) of ~$1,050,000 million before debt service and doctor earnings.

FCF is not EBITDA! Ask your bank and your accountant why FCF is superior to EBITDA.

This opportunity has four of the most crucial elements to mitigate risk:

1. Own the real estate – No landlord!
2. If a buyer wishes to rent the dental building, rent will be $1 in year one + TMI and Utilities
3. The Premise Lease will include First Option to Purchase
4. Employees are on proper, written contracts

Private Equity or a burgeoning i-Dentist™ accumulator is welcome to apply, although a firsthand owner is likely to appreciate the opportunity to a greater extent.

ROI Corporation predicts that a 15-year amortization will be approved by a respected Canadian financial institution.

$2.8 million term loan, 15 years @ ~$25,000 per month in principal and interest.

$1 million mortgage, 25 years @ ~$7,000 per month in principal and interest.

Interest rates are predicted to reduce one or two more times this year.

Historically, this practice generated over $250,000+ in monthly gross income.

At present, our client commutes from outside of the province.

He now works ~100 days per year.

Two (2) Associates and three hygienists are also employed.

Located in a picturesque, bustling four-season town within a half-day commute from Winnipeg, this setting offers the ideal blend of community spirit and the sought-after work-life balance that is hard to find in larger cities.

This top-tier practice is complemented by a meticulously maintained building prominently located in an area of high vehicle traffic (directly opposite Tim Hortons!), making it a prime investment opportunity. Having only its second long-term owner since the 1970s, this dental office has become a cornerstone for comprehensive dental care within the community.

The practice analysis indicates that a sizable number of specialized procedures are being referred out.

There’s a substantial opportunity for surgically skilled or orthodontically trained dentists to increase revenue through in-house treatments. The office employs three full-time dental hygienists, contributing 30% of the total revenue from hygiene services alone, and there’s potential to expand this team further.

The expansive, yet efficiently designed 4,200 sq. ft. office features 10+ fully equipped operatories, a modern sterilization area, a consultation room, and several spaces for staff and administrative functions.

Highlights:

• Patients are familiar with receiving care from multiple providers
• Exceptionally low Accounts Receivables
• Operating hours exclude evenings and weekends
• A considerable number of procedures are referred out
• The practice serves approximately 4,000 patients
• Utilizes digital radiography and scanning technology
• Offers growth potential across various dental disciplines

Terms:

• Your offer will be prepared on the ROI Corporation precedent Offer to Purchase (OTP)
• The ROI OTP forms a binding Agreement of Purchase and Share Sale (SPA) when your conditions are waived
• Our precedent OTP/SPA will be provided at no charge for your advisory team’s review
• Offers accompanied by a comfort letter from your financial institution will receive priority
• Your offers should include a refundable deposit of $250,000
• Deposits are payable to “ROI CORPORATION IN TRUST.”
• The preferred closing date is Fall of 2024

Investor Dentist™ and i-Dentist™ are Trademarks of ROI Corporation. Any use of these phrases by any other company is prohibited.

For more information or to schedule an appointment, please contact Reema Singla, Sales Representative.