"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This is a very successful audiology practice within a Mediclinic in Cape Town. The owner shares rooms with another practicing audiologist, and they have divided the hours for occupying the offices. Walk-in referrals from ear, nose, and throat specialists ensure a steady flow of clients.
A large part of their income is the profit they make from selling hearing aids.
They do pediatric and adult diagnostic audiometry, hearing aid fittings, and aural rehabilitation.
How long has the business been established?
Approximately 30 years
How long has the owner had the business?
Since 2022
How does the business operate on a daily basis?
They are open Monday to Friday.
As they share the rooms, walk-in clients are handled by the occupying audiologist when 'on duty'.
The hours listed represent the hours the room is available.
They also have a receptionist who is there all day and ENTs who are there on and off.
How are the clients attracted to the business?
This is a well-established practice that was established approximately 30 years ago and is well-known in the area.
That, with the fact that they are located in a hospital itself, leads to clients coming in the door.
They also have a website which draws some customers in.
What Advertising/Marketing is carried out?
None
What competition exists?
The rooms are shared with another audiologist.
Other than that, they are the main audiologists within the area.
What are the seasonal trends?
Their busy season is November to February.
Is the business VAT Registered?
The business is run in an Inc., which is VAT registered.
What VAT documentation is on file?
To be provided on reqeust during a DD.
Are there up-to-date Management Accounts available?
Yes.
What percentage of the business is cash/credit?
100% cash
What is the age analysis of the debtors book?
No debtors
How could the profitability of the business be improved?
Costs could be brought down such as accountant fees, insurance etc.
What is the total staff complement?
The owner is the main audiologist, and she shares the rooms with the other audiologist.
The ENTs who also use the space are not employed by the business/owner.
There are shared costs that the 2 audiologists share, which include the cost of the receptionist.
Give a breakdown of staff/ functions/ length of service?
The receptionist has been working for the practice for the past 16 years.
She is brilliant and is there to manage accounts, the diary, and anything else needed.
The ENTs consult on varying days and times.
They have been in the practice for 12 years and 3 years.
The other audiologist that they work with has been in the practice for 6 years.
Do any receive special perks or incentives?
No
How involved is the Owner in running the business?
She is a practicing audiologist and is in the business full time along with the other audiologist.
When does the current lease end?
The 2 audiologists, are also shareholders within a PTY LTD.
This PTY has the lease with the Mediclinic, owns the assets of the practice and carries the stock.
When the Inc are sold, the purchaser will also require 50 % of the shares in the PTY, hence a Lease Renewal is not necessary.
What are the main assets of the business?
The audiological equipment is shared between the business and the other audiologist in a joint company.
What is their overall condition?
Perfect to very good condition.
How have they been valued ?
Fair market Value - approx R 1mil - of which 50 % would be around R500 000.
Which assets are on lease/HP and with whom?
None
Are they presently insured?
Yes
Strengths?
Experienced Team: The two audiologists are excellent. The seller holds a BSc in Audiology, and the other audiologist is a qualified Speech Therapist & Audiologist. They both have strong clinical backgrounds and experience in the public and private sectors.
Multidisciplinary Collaboration: Close ties with ENT surgeons that enhance diagnostic and treatment capabilities.
Patient-Centered Care: Emphasis on trust, long-term relationships, and individualized treatment plans.
Specialized Services: Expertise in adult and geriatric diagnostics, tinnitus management, paediatric audiology, and newborn hearing screenings.
Professional Accreditation: Registered with HPCSA and affiliated with SASLHA and SAAA, ensuring high standards of care.
Weaknesses?
The rooms are shared, so the hours cannot be extended.
Limited Geographic Reach: Based in Cape Town, which may restrict access for patients in other regions unless telehealth is expanded.
Small Team Size: While highly skilled, the practice may face capacity challenges during peak periods or staff absences.
Dependence on Key Individuals: The practiceâs reputation and operations are closely tied to its founders, which could pose continuity risks.
Opportunities?
A Buyer could improve on an already lucrative business by improving the SEO of the website.
They have not delved into social media marketing.
Growing Demand for Hearing Services: Aging population and increased awareness of hearing health create market growth potential.
Expansion of Services: Potential to offer tele-audiology, mobile clinics, or satellite branches.
Technology Integration: Use of advanced hearing aids, AI-driven diagnostics, and digital patient engagement tools.
Partnerships: Collaborations with schools, elder care facilities, and wellness centers could broaden the client base.
Threats?
Market Competition: Other audiology practices and retail hearing aid providers may offer lower-cost alternatives if opened in the area.
Economic Factors: Hearing aids and services can be expensive, and affordability may impact patient uptake.
Regulatory Changes: Shifts in healthcare policy or insurance coverage could affect service delivery and reimbursement.
Although their hours are more preferable with the ENTs being in the rooms.
What is the reason for the sale?
The owner wishes to take a step back from the business and focus on her family.
Why is this a good business?
This is a very good business opportunity for a motivated audiologist. The practice is lucrative and prospective buyers will make their money back on their investment within a few years. The staff are friendly and it is generally a really nice place to work.
Why Co-Owning the Practice with Another Audiologist Is Beneficial ?
Co-ownership in an audiology practice offers several strategic advantages:
1. Shared Responsibilities
Running a practice entails a range of responsibilities, including clinical, administrative, financial, and legal duties.
Sharing ownership enables a division of labor, reducing burnout and enhancing work-life balance.
2. Complementary Skills
Each audiologist may bring unique strengthsâe.g., one may specialize in paediatrics, the other in tinnitus or geriatric careâenhancing the range and quality of services offered.
3. Continuity of Care
With more than one clinician-owner, the practice can remain operational during absences, holidays, or emergencies, ensuring consistent patient care.
4. Financial Stability
Shared investment reduces individual financial risk. It also allows for pooling resources for equipment upgrades, marketing, and expansion.
5. Strategic Growth
Co-owners can collaborate on business development, such as opening new branches, launching community outreach programs, or integrating telehealth services.
6. Enhanced Patient Experience
Clinics with multiple audiologists often offer more flexible scheduling, diverse expertise, and collaborative care, which improves patient satisfaction and outcomes.
