Thinking of buying a practice? Martin How MA (OXON) ACIB gives some sound advice...
Buying a practice can be a time consuming and stressful activity. At Medifinance, our team of experts are able to help you every step of the way - from analysis of financial statements through to drawdown of funds. We can work out the debt capacity of a target business plus undertake a non-financial business review through the lens of a potential funder. We can also help your search process by analysing and preparing summary reports on financial accounts and modelling different debt structures.
Many clients will have looked in detail at several practices before they find the right purchase but will endorse the value of having an early discussion with us about their search criteria and getting a deeper understanding of the lenders' credit appetite in this sector and the non-financial considerations they apply to a transaction.
Every practice is different, and there are many questions to be answered before making an offer.
Have you calculated the Adjusted EBITDA and run off a draft Year1 forecast?
Have you assessed the debt capacity of the business before finalising your own investment?
Will your forecast profit after your desired level of drawings meet the lenders' serviceability hurdles?
The debt market remains challenging and the range and depth of credit appetite is remarkably diverse, which gives you even more reason to consult with advisers who are close to the market.
We can tender the funding for a transaction across all the key players in the Healthcare Lending to ensure the best possible fit with your requirements.
Medifinance is an independent credit broker. We undertake a very detailed analysis of the financial statements of a target business and work with clients to build a credible profit forecast for the practice under your management. We can help you shape and present a persuasive funding proposal to a wide range of lenders and obtain the most competitive terms. We also manage the satisfaction of the lender's pre-conditions and manage the process through to drawdown.
About The Author
Martin How MA (Oxon), ACIB, is a Medifinance Consultant.
Martin was a senior manager in the financial services industry for over 35 years, leading commercial lending teams across a broad geography and working with a wide range of business sectors. Martin is an Associate of the Chartered Institute of Bankers and holds a Certificate in Credit and Certificate in Healthcare from the ifs School of Finance