Sell My Healthcare Business
If the time feels right to pursue a sale of your healthcare business, we can guide you through all the necessary steps – from laying the groundwork to completing a full exit from your company.
Having over 25 years of experience in selling medical businesses means we fully understand the reasons why owners choose to head in a new direction – they may want to retire, relocate to a different part of the world or launch a new venture with the capital that will come their way.
Perhaps a full sale is not your intention, and instead you are seeking investment from an organisation which can help you to expand your array of services and apply new techniques to boost the company’s growth.
Of course, with the healthcare industry being particularly nuanced and diverse in terms of its range of specialisms, extra care must be taken to identify the right buyer with the exact qualifications to ensure a seamless transition. For example, when selling a physiotherapy clinic you may want to target buyers that are at least Band 7 and have experience of both private and NHS organisations.
Challenges When Selling A Healthcare Business
There are several challenges that must be confronted by anyone planning to sell a medical business, 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 businesses 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 Business
Once you have rationalised what you are aiming to achieve from selling your healthcare business, 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 business 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 business 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 business 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 Business 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 business 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.
Expert Support Selling A Healthcare Business
At KBS, we can take care of all aspects involved in selling a healthcare 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 business 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 business sale that ticks all your boxes. Contact us on 0161 258 0118 for a no-obligation discussion with complete discretion assured.
RECENT BUSINESS SALES IN THE HEALTHCARE SECTOR
Lifecast Body Simulation Ltd
Lifecast Body Simulation Ltd, the globally renowned leader in the design of medical manikins, has been sold to German-based company 3B Scientific.
Ian Barton, Managing Director of our corporate finance team in London, led the transaction with support from Richard Hill and Tom Egan.
Launched in 2017 and based in Borehamwood, Lifecast has invested heavily into the development of a range of highly accurate and lifelike medical manikins which are transforming the way medical simulation and education are delivered and absorbed.
Designed and produced at Elstree Film Studios in London and in Sarasota, Florida, every manikin demonstrates a remarkable level of realism and quality. Lifecast has been developed using a combination of expertise from paramedics, leading medical experts and the film special effects industry.
Lifecast manikins are anatomically correct, with a range of models reflecting all age groups from pre-term babies through to elderly adults. With different genders, ethnicities and medical conditions, Lifecast manikins represent the world’s diverse population and improve learning outcomes. The manikins are used by medical training institutions globally.
Hamburg-based 3B Scientific, established in 1948, is a global provider of state-of-the-art medical simulators, catering to medical education training providers across all levels with a strong presence in over 120 countries.
The acquisition enables 3B Scientific to secure access to a market-leading and complementary product portfolio and is expected to provide Lifecast with additional resources to further invest in its product range and build on existing sales channels.
Ian Barton said: “It has been a real pleasure working with the Lifecast team to achieve this sale to 3B Scientific.
“Lifecast has created an exceptional product range and recognition must be given to the team for this innovation, combining extraordinary creativity and craftsmanship with leading medical knowledge.
“With 3B Scientific, Lifecast is well placed to take the business forward and create further advancements in the medical simulation industry.
“We are really pleased to have delivered this transaction and look forward to seeing the team’s continued and combined success alongside 3B Scientific in the coming years.”
Lifecast co-founder and director Dave Halliwell said: “Ian and Richard’s advice, support and persistence were essential and generated real value for the shareholders in what has been a complex deal. With many intricacies to navigate, their pragmatic approach to solving challenges as they arise has been extremely valuable and greatly appreciated.
“We would like to thank Ian and the team for their hands-on advice throughout the process, handling a variety of challenges in a robust and supportive manner and would not hesitate to recommend them to prospective clients.”
Todd Murray, CEO of 3B Scientific, added: “We are extremely excited to welcome Lifecast into the 3B Scientific family where, combined with our strength in manufacturing and distribution, we look forward to continuing our now collective mission of advancing the delivery of medical and healthcare education worldwide.”
Our team worked with Adam Dowdney, Tim Cargill and Fiona Kelleher of IBB Law LLP to deliver the transaction.
Lifecast Body Simulation Ltd
Sector: Medical Simulation
Location: London
Buyer: 3B Scientific
Ready to talk about your business requirements?
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+44 (0) 161 258 0118 or contact us now to get started.
Lifecast Body Simulation Ltd
Sector: Medical Simulation
Location: London
Buyer: 3B Scientific
Alterior Ltd
A more relaxed lifestyle for the company’s managing director has been enabled following the sale of Alterior Ltd by KBS Corporate.
Alterior is a Plymouth-based business which provides medical and dental diagnostic X-ray imaging systems and was founded in 2003.
The MD, Tony Hulbert, decided the time had arrived to pursue other interests in life while the operations director, Tom Lacy, wanted to remain with the company.
KBS Corporate, equipped with our prevailing network of potential buyers and exhaustive research tools, were instructed to facilitate the sale of the business and targeted a broad range of companies.
These comprised suppliers of medical equipment looking to expand their current product portfolio; other X-ray equipment providers aiming to expand their client base; suppliers to the NHS looking to increase their offering; supply and installation contractors for all medical sectors; and suppliers looking to gain access into leading manufacturing firms to secure future contracts.
Due to the niche service offering, there was considerable interest in Alterior from private equity buyers.
However, the eventual acquirer was Dublin-based company Medray Imaging Systems, which is the leading provider of radiology equipment, accessories and consumables to the healthcare industry in Ireland.
The transaction, overseen by Charles Needham, KBS Corporate Deal Executive, met the client’s targeted objective while also enhancing Medray’s presence within the UK’s NHS system.
“It’s always great to see my clients achieve their aspirations in deal value and deal structure,” said Charles. “I’m excited to see what the future holds for Tom under the umbrella of Medray.”
Alterior Ltd
Sector: Medical Diagnostics
Location: Devon
Buyer: Medray Imaging Systems
Ready to talk about your business requirements?
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+44 (0) 161 258 0118 or contact us now to get started.
Alterior Ltd
Sector: Medical Diagnostics
Location: Devon
Buyer: Medray Imaging Systems
MA Solutions (Lindum) Limited
MA Solutions (Lindum) Limited is a highly reputable water treatment consultancy, specialising in the design and provision of water treatment programmes including health and safety legislations for legionella control. The Company has experienced considerable growth since its foundation in 2004, with the strength of its workforce, products and service offering enabling it to build up an excellent reputation within its sector and maintain a high-value, long-standing client base.
Mark Agius, the sole shareholder of MA Solutions (Lindum) Limited instructed KBS Corporate with the sale of their business to facilitate further growth whilst allowing them to retire. During initial discussions, it became apparent that staff retention and the securing of future business with newly acquired clients was of high importance.
This shaped KBS Corporate’s research strategy towards overseas and UK trade resulting in 28 interested parties. The successful offer came from Severn Trent Services which has completed multiple acquisitions over the years, the largest of which was Dee Valley Group in 2016. The acquisition will enable Severn Trent Services to diversify its service offerings whilst also acquiring MA Solutions (Lindum) Limited’s client base.
Post-completion Mark Agius will remain with MA Solutions (Lindum) Limited to facilitate a hand-over period.
Matthew Sibley, Corporate Deal Executive at KBS Corporate advised MA Solutions (Lindum) Limited throughout.
MA Solutions (Lindum) Limited
Sector: Water Treatment
Location: Lincolnshire
Buyer: Severn Trent Services
Ready to talk about your business requirements?
Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.
MA Solutions (Lindum) Limited
Sector: Water Treatment
Location: Lincolnshire
Buyer: Severn Trent Services
Speak to our expert team on 0161 258 0118 to arrange a consultation
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