LOOKING FOR BANK FINANCING & INVESTORS FOR HEALTHCARE ACQUISITION FINANCING
I'm looking for cash-flow based financing. As we don't deal with the Real Estate; we usually lease it from the owner.
We can provide AR / Equipment as collateral.
Majority are off-market ( not from brokers ) deals, as the owners are looking to retire they are more flexible in terms of payment-structuring which is great.
Our target range is from $1M - $20M annual revenue for these initial acquisition targets, and expand up to $100M+
My Criteria to consider an acquisition is:
- Past 3 years steady growth ( No major revenue fluctuation )
- As the majority of businesses got affected by COVID we look at for how long, what effects COVID had on the business either positive or negative and what is the revenue percentage made in 2020 compared to 2019.
- 20%+ profit margins to ensure an ability to pay back even if they are losses present.
- A majority shareholder, we don't deal with partnerships or plenty of people with equity in the business.
- Owner stays on board for[redacted]months transitory period.
- We keep management in place and replace those that can't produce at the level we expect them to.
- We look for complementary / supplementary bolt-on acquisitions for that business, as external growth is the fastest. Meaning when we acquire the business we look to acquire competitors. We look to maintain/establish a dominant position in the market, that will prevent revenue drops/losses ensuring we can service the debt without an issue even if there are market changes / policy changes or revenue drops.
It may seem like a lot, but that's standard for us. We have a database that we filtered about 20k businesses in healthcare that fit our criteria listed above on the major points, the rest we negotiate, we are currently under negotiations for some potential acquisition targets and the rest we reach out to see if they are interested in taking an offer, most are not in office. But we have the future deal-flow that we need to ensure growth in these coming years.
This is not a joke to us as many people after they acquire a business get comfortable with the salary. We are looking to be a dominant force in the healthcare industry and create the change the industry needs.
We are looking to grow for the next decade and then exit either trough an IPO / Strategic Sale.
As for right now, we are looking to establish long-term financial relationships to finance a series of transactions ( not just a one time thing ) not only with firms, but investors who want to be part of the growth.