Glaucoma, Cataract, General Ophthalmology
Outstanding Reputation – Recurring Revenue – Limited Competition – Many Growth Opportunities – 10,000 Active Patients
This Practice has been in business for the last 25 years with a solo Physician. It is a well-established, long-standing Practice. Glaucoma specialty care accounts for about 75-80% of its volume, and the rest is general ophthalmology care. It is very profitable, with stable revenue and with high growth potential. There is a very high demand for services, with minimal competition. The Practice has a strong and steady referral base from many optometrists, ophthalmologists, and physicians. The physician owns the building and is open to leasing or selling the property. He is also willing to help transition the Practice to the new owners/physicians by working for a reasonable period of time, if needed.
About the Physician
The owner is a diligent and sympathetic Fellowship Trained Glaucoma Surgeon and a Board Certified Ophthalmologist with over 25 years of training and experience in Ophthalmology. He has provided excellent care to thousands of patients worldwide and has been serving the region for over 25 years. Many patients travel from afar to avail of his unique expertise and skills. He is admired and well-liked by his patients. Due to his dedication and expertise in managing difficult glaucoma problems, he has won the respect of his colleagues and the medical community.
Financial Highlights
The table below shows a summary of the past four years’ financials. More details are shown on the following pages. Note that the Doctor has taken extensive vacations, typically in the second half of the years. During the vacation, the office staff is being paid but patients are not seen. So the revenue and the EBITDA relevant to the buyer is the adjusted Revenues and EBITDAs that take into account the vacation coverage. The Doctor always has a long waiting list of patients, and so keeping it open during these vacation periods will not impact the revenues.
| (All figures are in USD thousands) | FY 2022 | FY 2021 | FY 2020 | FY 2019 | |
| Gross Revenue | 1,307,180 | 1,457,996 | 1,393,394 | 1,322,120 | |
| Gross Revenue (with vacation Coverage)* |
2,069,702 | 1,722,470 | 1,506,051 | 1,554,715 | |
| Adjusted EBITDA | 195,560 | 359,798 | 333,862 | 295,173 | |
| Adjusted EBITDA (with vacation Coverage)* |
614,947 | 505,258 | 395,824 | 423,120 | |
| % EBITDA Margin (with vacation Coverage)* |
29.71% | 29.33% | 26.28% | 27.21% |
*Vacation days of the Doctor when patients are not seen – 38 days in 2019, 18 days in 2020, 39 days in 2021, 70 days in 2022
Growth Prospects
- – Provide vacation coverage – this will immediately increase the top and bottom lines by about 20%
- – In-house optical shop and Optometrist
- – Satellite Offices – manned by either optometrists or partner MDs for larger geographical base
- – Offer upgraded or premium lenses.
- – Additional Services by partner part-time MDs – retinas, cornea, plastics, refractive surgery, botox injections to existing and new patients
- – Add marketing – currently, only referrals and word of mouth
Asking Price
We are looking for a fair multiple of EBITDA, which considers the Practice’s excellent reputation and its tremendous growth potential. It is important to take into account the income and adjusted EBITDA that is generated by providing vacation coverage. This is a lost income for the practice that can be easily recovered. And 90 % of the work can be covered by a board-certified opthalmologist and does not need a glaucoma specialist.
The buyer gets access to around 10,000 active patients and resources like trained employees, equipment, other assets, and goodwill.
