Fully describe the business's activities?
This is a Medical Practice, dealing with patients/clients mainly from the Upper Hihjway area, but there are a few clients who make appointments , and who come from other areas of KZN. There are 4500 patients on the database that has been built up over the past 16 years. The practice has a separate surgery where minor surgery takes place. General practioner with many years of experience in consulting and dealing with all medical situations.
How long has the business been established?
How long has the owner had the business?
The doctor also has an NGO that works in the neighbouring lower income areas of Durban
The property is also for sale and has been independently assessed and valued. The owner would prefer both the business and the property to be sold as a "package" The value of the buildings and the property is R2 million. it is situated in a street that has commercial rights and in a well known residential area of the Upper Highway. This process of applying for commercial rights is taking place and should be granted shortly.
How does the business operate on a daily basis?
Patients are booked in for appointments from 0800 hrs to 1630 hours Monday to Friday. The nursing sister assists with the taking of blood and with the ecg administration. Insurance and travel medicals are carried out on a daily basis, over and above the normal client/patient appointments.
How are the clients attracted to the business?
Word of mouth referrals are the major factors in developing of new business.
What Advertising/Marketing is carried out?
No advertising is carried out as the working hours are fully booked with regular clients on a daily basis.
Does the business have any contract work?
What competition exists?
There are other medical parctioners in the area, and each one has their own client base.
What are the seasonal trends?
No seasonal trends although school hoildays are slightly busier than none holiday periods.
Is the business VAT Registered?
What VAT documentation is on file?
All documentation is with the accountant
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
February 2019 AFS 's are available
What percentage of the business is cash/credit?
90% of payments come from the Medical Aid schemes, or via credit card payments. There is a small amount of cash transactions.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Growth in the practice would have to be when a "partner practioner" buys into the business, to develop a larger client base.
Is Seller finance available and for what amount?
What is the total staff complement?
2 plus a casual cleaner. The staff consists of a receptionist and a qualified sister.
Give a breakdown of staff/ functions/ length of service?
The sister assists the doctor with the small surgeries and also with the medicals for insurance and travel requirements i.e. taking blood samples, ECG readings, as well as chronic applications, script requests, maintaining control of medical waste. The sister has been in the business for 3 years, and the admin manager for over 7 years. The Practice manager handles all the appointments, patient billing, reconciliation of accounts and queries, month end reporting, practice bank account and payments, bank reconciliation as well as staff, general maintenance/repairs supervision within the business. The cleaner comes in 3 x a week and assists with basic filing, washing and ironing duties.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
Each function of the business is managed by the staff as detailed above, and there is no need for an independant manager.
How involved is the Owner in running the business?
The owner sees all patients everyday and a locum attends to these if the doctor travels away.
Any special arrangements for the staff related to the Covid-19 pandemic?
Staff all wear masks and all patients utilize sanitization soaps for washing of hands prior to entering the treatment rooms. Hours of conducting treatments were changed due to travel constraints.
When does the current lease end?
The owner owns the premises. A nominal rent is charged for the use of the premises. The property is also for sale and it has been independantly assessed and valued. The municipal value and the valuation carried out by an independent evaluator is R2 million. Th premises is on a half acre plot in a well known suburb in the Upper Highway, and the practce has commercial rights allocated to the buildings.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
0800 to 1630 hrs Monday to Friday
What is the square meters of the business?
250 square meters
Who is the Owner/Landlord?
The doctor owns the property.
Is a copy of the lease available?
Do you require a licence?
The purchaser would need to be a qualified doctor/medical practitioner
What lease deposit and/or other surety is required?
What are the main assets of the business?
There are a variety of necessary machines required for certain treatments, plus a good software programme on the computer system. Computers, copier, fax machines and a comprehensive filing system are all in place. The property is also an asset of the business, and it is preferable to purchase the property with the business.
Are any items not included in the sale?
What is their overall condition?
All machines re in good working order. Th eproperty has just undergone a refurbishment and both interior and exterior painting.
Do any require repairing?
How have they been valued ?
The insurer has just revalued the assets of the business, at replacement value.
Which assets are on lease/HP and with whom?
Th printer is on lease as well as the telephone system
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Well known in the area and as the doctor is a female doctor there are many female patients that utilize the practice. The business has been in existence for 16 years.
No real weaknesses as the business is extemely well known with professional staff offering high qualty services to the local clients.
If the business were to expand there would be a need to move into larger premises. Currently the business copes well with the daily appointments.
No threats perceived
What is the reason for the sale?
The doctor wished to relocate to the northern areas of KZN, and wishes to sell both the practice and the property
Why is this a good business?
The practice is well situated and is easily accessable, based in an up market area of the Upper Highway. The practice has a successful track record of over 16 years and there are 4500 clients on the database.
What is the price plus stock and the profit?
The Selling Price of the business is R2,500,000 and the property is R2,000,000 , The preference is that the property is sold with the business. The Net Profit of the business is R901568
Annual Turnover Amount between R 500 thousand and R 6 million