Buying a Medical Business
Buying a business may be one of the single most important decisions a professional makes in their career. Buying an existing business provides the purchaser with an immediate patient base and brand and hence a revenue stream and income from day one. This is opposed to a start up entity that carries risk associated with the initial timeframes of expense with minimal income and the risk that the business does not build to the satisfaction and requirements of the intended business plan.
From a financiers perspective, there is a much stronger case to lend to a buyer against an existing proven profitable business than against a start up operation that may require external assets to be used as collateral.
Prospective purchasers may be new to the business environment taking their first steps into the commercial side. Others may be existing business owners looking to expand their base by making acquisitions and growing their firm.
When looking to purchase a business, many important aspects need to be considered from both the purchaser and vendor perspective. Most vendors look to keep the marketing of their business confidential so as not to attract unwanted attention to their brand and unsettle their staff or patient base. This is one of the main reasons why vendors will engage a business broker to look after the marketing and sale of the business.
A business is very personal to most owners who have spent years working and building their brand to create a successful practice. For this reason, many owners are careful as to who they engage when it comes to the initial stages and enquiry of the business sale. All prospective purchasers through Medical Business Brokers will be asked to execute a Confidentiality Agreement prior to any communication or documentation being provided or location disclosure. In some cases, depending on the request of the vendor, we may also ask for evidence of approved finance from a financial institution or evidence of existing funds to complete a purchase prior to disclosing information regarding the business for sale. This is all in order to protect the commercial interests of the vendor.
How a Medical Business Broker can help
Medical Business Brokers handles the majority of the sale process from initial prospecting and engagement with buyers through to contract execution and completion. In the majority of cases, fees charged by Medical Business Brokers are covered by the vendor at the point of sale. We do however in some specific cases work in a Buyers Broker capacity for some larger corporate clients looking to expand their commercial footprint with acquisitions. In these cases, we are enlisted to seek specific targeted business and charge a fee to the buyer rather than the seller.
Medical Business Brokers businesses are vetted to see that they have clear and concise financials that will stand up to the due diligence process. We do not represent or bring to the market businesses that have unclear financials or complex structures.
LOOKING TO BUY OR SELL A MEDICAL BUSINESS?
Our website contains just a selection of our businesses for sale, contact us if you are looking to buy or sell a Medical Business.
Call 1300 508 292 or email us today!