Supporting the Sale of a Healthcare Clinic
Preparing a healthcare clinic for sale, Capten Valuations identified hidden value and delivered a defensible report, enabling the owner to negotiate a premium price confidently.
The Challenge
The owner of a growing healthcare clinic was preparing for retirement and sought to sell the business to a strategic buyer. While revenue was strong, financial statements underreported profitability due to legacy accounting practices. A precise valuation was needed to withstand buyer and lender scrutiny.
Our Approach
Capten Valuations conducted a comprehensive pre-sale valuation and transaction advisory engagement. Our work included:
- Detailed Quality of Earnings review to normalize revenue, physician compensation, and discretionary expenses.
- Identification and documentation of key EBITDA adjustments.
- Forward-looking financial projection model based on patient growth and reimbursement stability.
- Defensible valuation report aligned with market transactions in healthcare.
- Strategic guidance on value drivers and deal structure to improve negotiation leverage.
The Outcome
The valuation revealed a materially higher normalized EBITDA than initially reported, resulting in:
- A 22% increase in business valuation compared to the owner’s original estimate.
- Strong buyer confidence and smooth lender approval.
- Successful sale completion within 90 days at a premium multiple.
- Recognition of Capten Valuations for unlocking hidden value and strengthening negotiations.
Industry: Healthcare
Engagement Type: Transaction Valuation & Advisory
Client Type: Owner-operated medical clinic