Established GP practice w/ loads of active pts nr Port Adelaide
About this business for saleEstablished GP practice w/ loads of active pts nr Port Adelaide
There were 2x GP's wkg here; the owner is doing about 30 hrs a per week and the other GP was only doing about 2 days a week. The other GP has taken a break now and may not return. The owner wants to transition to retirement, but is also doing cosmetic work on the side with injectable (botox, restolin and distort) and is looking to start doing one night a week after hrs/on call too to add to the income of the practice. Currently he is only wkg about 25 hrs a week clinically or 5 hours a day.
He has the practice set up with a Family Trust and another entity owning the freehold:
- Hendon Medical Centre Pty Ltd has all the Medicare Income
- MA Alexander Family Trust pays all the bills and then bills the Medical Centre
- General Investments & Building Pty Ltd owns the real estate
He's happy to sell the freehold or create a long-term lease for the new owner. Freehold is worth about $750K so rent should be about $45K pa + GST and on-costs. The land is a double block of land.
He has the financial statements created for the last 3 yrs and has gross billings of about $360K pa. The cosmetic income doesn't go into the MC income and some of the expenses are paid by the family trust. He is showing a profit of $100K which he says is not his income. The wages are about $70K and the electricity is low due to the solar panels he has had installed. He is running some home expenses including his personal cars through the business so with normalization, this additional profit can be realized. There is no rent being paid by the practice as he owns the freehold.
His points of difference from other clinics are that he is an Ozzie trained older GP's w/ an extensive data base of pts developed over 36 years. He is also stopped bulk billing altogether in Aug 2017. He believes that they still practice old fashioned medicine and have a personal touch with their pts.
This owner is quite flexible with how the sale will look and is open to all options. If the buyer wants him to remain working there, he is happy to remain wkg there on a P/T basis. He is hoping to get $185K for his business; with him staying on for an extended period of time, his developed goodwill (with his pts and in the community) will remain at the practice.
Gross is a little down in the last financial year as the owner took 6 weeks of leave at end of year and then began billing all patients a gap for the last period on 2016-2017 which meant a slight delay in money flow. However, the end result of completely stopping all bulk billing was an increase in average amount billed from $37.05 to $37.05 +$18.95 = $56 that is an increase of around 50%.
To enquire on this business visit www.linkbusiness.com.au/NSW00523 and click on "enquire now"
For full details contact Sally Stuart on firstname.lastname@example.org or on 0437 082 045.
Note: The purchaser to make his/her own investigations and enquiries in relation to the business and not to rely upon warranty or statement made by the vendor or by anyone on his/her behalf.
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.