A medical professional sits at a desk opposite a patient. She is holding a pen and making notes on a clipboard that is lay on the desk.

CHALLENGES WHEN SELLING A HEALTHCARE COMPANY

There are several challenges that must be confronted by anyone planning to sell a medical company, and potential buyers will be keen to know before they proceed how you have addressed the following:

Funding: Is your company set up to withstand funding cuts from local authorities and able to cover employee salary costs, factoring in rises in national living wages? Reliable income streams are critical in this regard.

Staffing levels: Healthcare organisations have been hit particularly hard by Brexit, which led to a significant decrease in the number of EU workers remaining in the UK. Hiring agency staff to fill the void can be expensive.

Operational costs: Following the spike in the inflation rate, the cost of maintaining business infrastructure – which is vital when selling your company – and carrying out research and development (R&D) work has risen.

Impact of Covid-19: Medical companies were inevitably affected greatly by the pandemic, the results being backlogs in provision of care and greater patient demand, plus increased spending required on PPE and cleaning of premises.

PREPARATION FOR SELLING A HEALTHCARE COMPANY

Once you have rationalised what you are aiming to achieve from selling your healthcare company, we can help you with each step that comprises the process:

Valuation: Our vast industry experience means we can advise a realistic valuation of your company that strikes the right balance between ensuring you are adequately rewarded for building up your business and not pricing yourself out of the market.

Marketing: We produce ‘best in class’ presentational materials for our clients that showcase the key aspects of the opportunity, working closely with you to produce a comprehensive Information Memorandum and a confidential Opportunity Summary.

Financial report: A detailed financial model or forecast is another key part of the service we provide, illustrating the future projection of your company over, typically, the next two to five years and how it can represent a high-value investment for an acquirer.

Due Diligence: Buyers will want to know everything is in good order with the company on the financial and legal fronts. To ensure all data corresponds with the information you have presented, they will undertake their own professional due diligence.

Confidentiality agreements: Complete discretion is required by all parties involved in selling a healthcare or pharmaceutical company and you will be safeguarded by a Non-Disclosure Agreement which ensures protection against any of your confidential data being disclosed.

Granting site visits: Naturally, a potential acquirer will want to visit in person the healthcare or pharmaceutical company you are selling. Thus, it is imperative to give the best possible impression, both in terms of the company’s optics and the efficiency and practices displayed by your staff.

Sale completion: By joining forces with us, we will drive the sale process forward to ensure momentum is maintained by taking on much of the workload, allowing you to focus on the vitally important aspect of running your company to best effect.

VALUING MY HEALTHCARE COMPANY TO SELL

Various factors are taken into account when arriving at a valuation for a medical business, such as any property registered under the company’s ownership, its financial position, goodwill and the potential for growth.

If you own premises, the valuation of the company will be influenced by whether it is freehold or leasehold and the size of floorspace. Goodwill, meanwhile, refers to the quality of service you provide and consequently the reputation of the company, leading to repeat custom and recommendations to new clients.

A strong reputation will organically lead to reliable revenue streams, a healthy cash flow and an overall positive financial profile, potentially opening up increased growth opportunities.

Glass medical equipment on a conveyor belt in a healthcare setting.
A compassionate nurse gently holds the hand of an elderly woman, conveying care and support in a warm healthcare setting.

EXPERT SUPPORT SELLING A HEALTHCARE COMPANY

At KBS, we can take care of all aspects involved in selling a healthcare or pharmaceutical business thanks to the creative, proactive approach we apply when working with any company. As well as utilising our vast network of potential acquirers to identify the ideal buyer, we can facilitate the full range of professional services you may need during the process, for example legal experts and tax advisers.

With our expertise, technology and contacts, we implement a personal approach with a bespoke, tailored service whilst deploying complete confidentiality in the aim of fulfilling all your objectives for your company sale.

For more than 25 years we have delivered award-winning success and we are ideally positioned to guide you through each step of the journey towards completing the company sale that ticks all your boxes. Contact us on 0161 258 0118 for a no-obligation discussion with complete discretion assured.

EXPERT SUPPORT SELLING YOUR HEALTHCARE OR PHARMA COMPANY

It may appear from what you have read above that selling your healthcare or pharmaceutical company is a lengthy, complex process – but it is certainly not something you would have to navigate all by yourself.

Instead, you can benefit from the expertise of KBS, a one-stop shop for anyone selling a healthcare or pharmaceutical company. Our superb track record over more than a quarter of a century’s experience in the business sales industry vindicates our approach in applying a bespoke, personalised service to every company we sell.

Besides understanding your aims for the sale, marketing your opportunity and finding the right buyer, we can connect you to all the services you may require, for example legal experts and tax advisers.

Our knowledge, contacts and use of the latest data and technology means we can maximise buyer reach whilst only considering those with the financial means, insight and desire to buy your company and push it forward.

Having established a proven history of delivering award-winning success, we can accompany you throughout the journey towards completing a company sale that fulfils all your objectives. Contact us on 0161 258 0118 for a confidential, no-obligation discussion.

Sell my healthcare business

SALES WE HAVE COMPLETED
IN THE HEALTHCARE SECTOR

Newgate Technology

Newgate Technology, a software development and IT consultancy, has been sold in a transaction advised by KBS Corporate.

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acquired by

Newgate Technology

Sector: Healthcare Software

Location: Scotland

Buyer: Athera Healthcare

Lifecast Body Simulation

Matthew Sibley, KBS Corporate Associate Director, has advised on the sale of KJ Fasteners to a Gateshead-based industrial specialist �…

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acquired by

Lifecast Body Simulation

Sector: Medical Simulation

Location: London

Buyer: 3B Scientific

Vivup

Vivup provides employee health and wellbeing benefits to over 550 public and private sector organisations, supporting more than 1.5 mil…

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acquired by

Vivup

Sector: Employee Benefits

Location: Surrey

Buyer: Omni Partners

Completed Sales

INFORM MAGAZINE
ISSUE: SUMMER ’24
KBS corporate insights, advice, and a buyers mindset.

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