Ref# 5131
Toronto
ROI Corporation is pleased to announce the sale of a dental office with excellent visibility in the heart of downtown Toronto.
Our client is relinquishing ownership of this associate-driven office in order to pursue other business opportunities.
The sale is structured as a tangible asset sale which is tax advantageous to a purchaser. Speak to your accountant about future tax shields when buying assets vs shares of a Professional Corporation.
This well-laid-out and equipped office is highly visible due to street exposure. Spanning a little over 1,500 square feet, building out a similar-sized office in this location can range from $1.0 to $1.5 million in start-up costs.
The office was built in 2013, and ten years later, it was generating approximately $1.3 million in annual gross revenue, treating approximately 1,400 patients of record.
A milestone event occurred in the Spring of 2023 – a fire closed the practice for almost one year.
Since the grand re-opening in May 2024, many pre-existing patients have returned accompanied by new patients due to the high exposure.
Now in the Summer of 2024, the practice is generating ~$55,000 per month. There are 2 Associates, 1 hygienist, 1 assistant, and 1 receptionist employed.
The practice is open Monday to Friday from 10 am to 7 pm and Saturdays from 10 am to 3 pm. Our client does not attend the office.
The practice has already established a relationship with Toronto Metropolitan University (TMU) and will be participating in Frosh Week, where over 5,000 students will be visiting their booth next week. A complete marketing plan for the University has been planned and can be easily executed by a new owner. It is well known that universities and staff have a form of dental coverage. Since it is associate-driven, it would also be an excellent opportunity for someone who already has an established clinic and would like to tuck this one into their existing office.
This opportunity is also perfect for the sophisticated purchaser who may purchase nearby, smaller offices simultaneously in order to create a mega office.
The current lease runs until 2028, with a further extension until 2033. There is a demolition clause which, when exercised, will ultimately require the new owner to move the clinic. An application has been filed for redevelopment, but the demolition clause, which has a 12-month notice period, has not yet been triggered. Given the current location, proximity to TMU and the dense population, moving the clinic to a new location is very feasible. Practices are successfully moved on an ever-increasing frequency, and a new owner can enjoy the next 3-5 years to not only return the production to the pre-fire levels but continue to increase new patients with the marketing plan already established by our client.
Finding new space in the core of downtown, given the increase in vacancies, can be successfully achieved.
ROI Corporation’s valuation has been published with full consideration of the demolition clause.
This truly is an excellent and rare opportunity to acquire a successful practice well below the cost of a startup.
Highlights of this practice:
- 35-40 new patients per month (39 in the month of July – traditionally a slow month)
- Assignment office
- Tracker software
- Fully digital
- 3 operatories with room for 2 additional
For more information or to schedule an appointment, please contact Jackie Joachim, Sales Representative & COO, and/or Constance Walker, Sales Representative.