MSKPN Webinar Business briefing – Business exit

Josh Catlett from Verulo, a brokerage specialising in the health sector shares his experience in scaling a private practice and transitioning into business brokerage.

Summary

Market Update and Buyer Distribution
• Josh provides a market update on the MSK sector, highlighting the distribution of buyers.
• There is an increase in solo practitioners looking to buy smaller practices, particularly in metropolitan areas.

Transaction Insights
• The average turnover of businesses represented has decreased, but this is due to an increase in smaller businesses being represented.
• The average adjusted EBITDA margin has improved, indicating better financial health among businesses.

Factors Impacting Saleability
• Higher turnover generally leads to more attractive business valuations.
• Having a solid lease and reducing reliance on the owner for clinical work are critical for saleability.

Challenges in Selling a Business
• Changes in financial performance during the sale process can impact final offers.
• Buyers typically seek cash-free, debt-free transactions with sufficient working capital.

Sector Predictions
• There is growing interest in buy-and-build roll-ups in the MSK sector.
• Emerging trends include cross-sector practices and a focus on experience-led care.

Final Thoughts
• Josh emphasizes the importance of being prepared and maintaining clear expectations during the sale process.