“When you have an existing patient base, you've got existing cash flow, and that does give a lot of comfort”

Sam Waterhouse · The Business of Allied Health · The Business of Allied Health - Episode 31: Deanne Bannatyne & Sam Waterhouse

Play from 4:52
4:52

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What was described

state that buying an existing practice is lower risk for a bank than starting a new clinic because it shows existing cash flow and patient base

Said nearby on the same subject

“Buyers are looking for good quality clients, a well-run practice and a team that continues post-sale because they have existing relationships with the clients.”
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“Buyers look for good quality clients, a well-run practice and a team that continues post-sale because they have existing relationships with the clients.”
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Mark Emney
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“Within two months, Relevance had me in the one or two spot… practice was getting around 10 new patients a month… Relevance had me around the 30 new patients per month… currently averaging about 40 new patients per month”
♫
Said on Dental Practice Heroes
Tool went from 7-17th position to 1-2nd spot; new patients rose from ~10/mo… Share this moment
“If you buy companies at 4x… you’re buying 10 M worth of cash flow… you’ll have cash flow from subsidiaries to fund later deals.”
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Giuseppe Balzano
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Why it worked 4-5x cash flow, 10 M cash-flow purchase yields ~8.5 M actual cash flow… Share this moment

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