Due to ongoing illness, I am bringing a Melbourne practice to market at the reduced price of $270K
About this business for saleDue to ongoing illness, I am bringing a Melbourne practice to market at the reduced price of $270K
I am writing today at the behest of this Melb practice owner as she is selling due to sickness. She started this business less than a year ago but b/c of ongoing treatment, is no longer able to manage the practice. She is also the practice manager there so if you buy the business, you’ll need to either bring in practice management experience or someone that can fill this role for you!
She is currently breaking even after opening in Nov 2016. There was a 10-year lease in place and in Nov this year, it will be at the end of the 1st year of the first 3 yr options, with another 9 yrs to go (3x3x3x1 yrs options available). The lease commenced at $65K pa + GST with incremental increases. There are 2x FTE GP's working at the practice, none of them on contracts and all receiving 70% fee split; 2x female and one male who is looking to grow his pt data base and then work more hrs. Each day, they have 8 to 10 new pts. The female GP that used to work F/T has reduced to 3 days a week, the p/t female is working Mon/Wed/Fri and the male is doing one session at the moment and looking to increase this. The clinic currently owes the business owner $60K so the P+L's are not showing any profit, however, with a current pt base of 1850 pts, growing week on week, it will start turning a profit from Sept 2017. The practice is BB however, with female GPs seeing loyal pts, there would be the option to change over to mixed billing should the new buyer like to do this.
Currently they are billing about $10K per week which equates to $520K pa, so another buyer who could work here F/T and increase the billings would be ideal. They are seeing approx 550 pts per month ATM. We have 25 to 40 patients per day and approximately 100 to 120 patients a week and building.
In regards to incentives, they are now having Uni students attending the practice so they will start receiving PIPS. They are currently receiving PNIPS ($6,500 per quarter or $26K PA) as they have a p/t nurse there to assist in maximising the GP's billings. There are no registrars in training so no SIPs as all the GPs there are VR'ed. Additional income to the practice comes from allied health:
- Podiatry - 20% of their medicare rebate
- Physio - $100 per session worked
- Audiology - commencing there soon
- Massage - commencing there soon
- Dietician - $35 per session
- Pathology (St Vincent's) - $60K pa
- Holter Monitor - $20 per pt
There are 4 consulting rooms, a treatment room, kitchen, two reception areas and a pathology room. From the attached photos, you can see also the large car park available with up to 14 car bays. The size of the practice is 200 metres squared so from a fit-out perspective, it would cost about $320K to get this house renovated to be a Medical Centre. Realistically, you are paying for a fitout and some equipment/P+E/Consumables with no good will included in this price…your accountant will be happy with this!
The clinic location is ideal for those who live or work in Balwyn North and the surrounding areas, including Bulleen, Templestowe Lower, Doncaster, Box Hill North, Box Hill, Balwyn, Kew East and Ivanhoe East. They are close to public transport with bus stops within short walking distance and there is ample onsite parking available for those who prefer to drive.
Their dedicated and experienced general practitioners enjoy all aspects of general practice services and work together to provide the patients with a comprehensive range of services, including general Health Assistance, Immunisation, Chronic Disease, Diabetes, Asthma, Pap Smear, Shared Care, Pathology, Women/ Men’s Health, Travel Vaccination, Chronic Disease, Management, Blood Pressure, Men’s Health, Minor Procedures, Pediatric Care, Family Health.
Appointments are available 6 days a week with convenient online booking services available. Site visits can take place at a mutually convenient time.
If you are interested in this practice please let me know by return email as the PM needs to sell! She is quite firm on her price and not interested in any low ball offers, as she has already declined several. I can send you out a Heads of Agreement to work through and organise your site visit ASAP, so let’s make this a quick sale!
To enquire on this business visit www.linkbusiness.com.au/NSW00548 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.