Most clinic owners believe a sale is the primary solution to maximising their wealth. It is the return on the years of sweat equity they poured into the business, and thus there is an emotional attachment and, in most cases, an unreasonable expectation of what the business is worth.
AMG advises clinic owners think of a more diverse strategy: monetising their business now and accessing capital to improve their overall financial position, by investing in additional wealth diversifying opportunities.
Sound complicated? Let AMG uncomplicate it and create a planned strategy to achieve this. We all know that clinic growth is a challenge, risky, and requires immense time and attention. There are numerous other investment opportunities a person can act upon which yield a better return.
AMG positions its expertise and our offer, in a way to open the door to financial opportunity, and change the approach to maximizing success, to one of diversifying wealth.
Here are some considerations that make maximizing financial success so challenging and how AMG can create a viable “game” plan to diversifying wealth:
- Growing your clinic is an uphill battle! What are some dermatologists doing to get ahead financially while alleviating themselves from the burden of running a clinic?
The answer is “Diversifying Your Wealth”. - The euphoria of starting a private practice has diminished for many clinic owners after years of internal battles with admin burdens such as HR, regulatory, insurance, compliance. “Physicians go to medical school to learn how to deliver medicine, but instead they’re doing a bunch of administrative tasks,” says Suephy Chen, MD, MS, FAAD.
58% of respondents to the Medscape report cited too many bureaucratic tasks as the No. 1 reason for burnout.
https://www.aad.org/dw/monthly/2021/december/feature-running-dry - The entrepreneurial drive essential to grow a clinic will waver on many days. It takes a tremendous effort to get something new up and running.
“Healthcare industry EBITDA (net profits) grew 5 percent pre-COVID-19 (between 2017 and 2019) and remained flat over 2020 and 2021. We estimate post-COVID-19 (between 2021 and 2025) growth at 6 percent — McKinsey - What happens if you don’t grow it, or you lose a doctor when you want to sell it, or a competitor opens up down the road and takes a % of your patients and your income? What if your costs rise faster than your income? These are relevant questions and common occurrences. If something doesn’t go according to plan, do you have a Plan B to implement right away?
- Investing solely on growing a clinic is like putting all your eggs into one basket. To achieve 5-6% growth p.a. requires 100% of a clinic owners’ time, resources, and capacity. Who has that? There is a better way to achieve financial growth with less effort.
Partner with AMG to leverage your businesses’ value for a significant upside.
A partnership with AMG can help you alleviate your admin burdens and give you back time to do what you enjoy: seeing patients.
- You can capitalise on AMG’s proven method and expertise to help your business grow.
- You will retain full clinical autonomy because we understand that you know your clinic best.
- We help you access financial capital to grow your business and de-risk your business from regulatory compliance matters.
AMG offers potential upside opportunities to its clinic partners.
- Gives clinic owners part ownership of the entire group by accessing shares of the larger entity.
- Attract a second opportunity to monetise their clinics value, at a much higher valuation than that of their clinic today. Investments of this nature in other businesses have typically returned 2 – 4 x, that’s equivalent to 100-300% – which is why many AMG partners have already chosen to do this.
- Diversify your wealth into other investment asset classes, such as real estate. The ASX and Russell Investment’s Long-Term Investing Report determined that the average gross (before tax) return from residential property from 1995-2015 was 10.5% per annum.
https://www.aquilaproperty.com.au/what-returns-should-i-make-from-property-investment
AMG offers the opportunity to achieve financial success and is the new path many clinic owners have chosen to pursue. AMG understands this business and the emotions that drive clinic owners. We ensure that the partnership allows owners to do what they love: see patients and reduce the burdens of running a business.
It’s time to prepare for a newer and more challenging world. It’s time to begin to diversify wealth and maximize success, and AMG is the right partner with the right plan to help you do this.
Go to www.auramedicalgroup.com.au/partner-with-us to learn more about AMG’s dedicated business professionals and their proven growth strategies.
