You want to sell your clinic? If so, it's good to know what the takeover market in the field of clinics looks like. Healthcare, especially specialty medical care, is on the move. Staff shortages, specialty treatments and awareness are causing the number of private clinics to increase in recent years.
The landscape of specialty medical care is in flux, which is causing more consolidations in the merger and acquisition market. The number of clinic/practice mergers and acquisitions peaked in 2021 and 2022.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the healthcare and pharmaceutical sector - to which a clinic belongs - an indicative range of EBITDA multiple of 5.9 to 6.9 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
Do the calculationWant to buy a business or sell a business in the healthcare & pharmaceuticals sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in healthcare & pharmaceuticals. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
Download reportThere are relatively many one-man practices in this sector, but the number of practices with 3 or more employees is also quite high.
In figures, the number of clinics/practices in 2024 looked as follows(CBS):
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To Brookz AcademyA number of trends and developments will inevitably cause changes in the coming years, but also offer clinics/practices many growth and acquisition opportunities:
The uniform approach in health care is losing ground a private clinics that provide specialized and personalized care past. Technological advances in genomics and AI are allowing healthcare providers to know more and more about individual patient needs. Treatment plans are becoming more specific and tailored to the unique patient.
Electronic health records make it easier for healthcare providers and patients to provide and receive care faster. But these digital health records do pose a significant cybersecurity risk. How do you make sure this highly personal data is safe from hackers and how do you deal with security breaches.
Remote health checks are gaining in popularity, reports CBS. And while this option is not suitable for all treatments, the reach of clinics is becoming much greater. After all, for some rare diseases, this way patients can still consult that famous doctor on the other side of the world, whereas previously this required a massive crowdfunding and logistical operation. As a clinic, you cannot avoid offering tele-health consultations.