Most Accurate Financial Benchmarks
Start │ Buy │ Invest
Prevent buyer/successor remorse
Identify industry strongest/weakest drivers Access most accurate industry financial benchmarks & exclusive non-financial KPI data
Formalise a Top Performer Plan
Top 3 Concerns
Where does your practice sit?
1. Ability to recruit contracting doctors
62% said recruiting contracting doctors when required was their biggest concern
2. Losing contracting doctors
49% are losing contracting doctors, with practice disruption the second highest concern
3. Undersupply of doctors
41% were experiencing continual disruption
Most Accurate Industry Benchmarks
Extensive financial/non-financial data: General Medical Practices
Earnings before interest and taxation (EBIT) as a percentage of gross fees after partner(s) salaries
Fair market value business valuation multiples (sourced from a trusted and reliable business valuation tool)
Industry Average: 8.5%
Industry Average: 3.3
Industry Benchmark: 28.1%
Average of the top 20%
Improvement Opportunity:
Industry Benchmark: 3.9
Average of the top 20%
Improvement Opportunity: 18.2%
230% Profit Improvement Opportunity
Grow │Improve
• Potential - triple profitability to 28.1%
• Source reliable benchmarking data
• Benchmark against industry Top Performers
• Compare Non-Financial KPI driver stats
o 64 Risk-Profit-Value drivers
• Secure funding - growth & succession
• 37.5% of Principal Doctor(s) lack motivation to grow, only 16% of practices having specific growth plans
79.2% - not formally comparing practice performance to industry benchmarks
Non-Financial KPI stats
Compare your practice to 64 KPIs, start with these…
54.5% - plans in place to adequately train, supervise, mentor & manage Doctors/Registrars
44.5% - opportunities exist to expand practice operations
30.6% - not maximising knowledge of MBS to improve patient fee returns
12.8% - consulting rooms always operating at peak capacity
7.9% - well managed advertising & marketing plans for future growth
Value │ Succession │
Internal succession
Personal vs practice goodwill
Manage formal succession planning to grow wealth in & outside your practice
Attain value needed to achieve financial independence
Succession Planning
The number of FTE Doctors is a key profit-value driver
Internal
Succession
Contracting Doctors Attract with performance rewards Develop professional & clinical skills Retain with ownership pathways
Target
Practice Goodwill generates
higher valuations
Succession Essentials
58% of Principal Doctors are like minded with the same vision
Practice valuation & annual revaluation
Top Performer Plan & sounding board support
Reduce personal goodwill risks
Planned, structured exits
87.1% of GP Medical Practices have a medium to very high degree of ‘personal’ goodwill…
Case Study Personal Goodwill
Do you know who owns your patients?
Case Study Insights
“The business had no documented succession plan. Shareholder & staff agreements did not address key succession risks such as personal goodwill. The share sale was deferred.”
Peak Performance Start now!
• Complete a Risk-Profit-Value Driver analysis on your practice
• Why do the analysis?
o Lower risks & secure funding
o Discover profitable growth opportunities
o Identify key strengths/weaknesses
o Leverage the power of non-financial KPIs
• Receive your Scorecard, Top Performer Report & improvement planning action items
Improvement Planning & Accountability Support
Action items to fix high concerns & practice weaknesses
19.7% have engaged a trusted adviser & are willing to receive independent advice & support
Why Prosperity Advisers?
Adding real value: specialist advice & support
Highly respected & trusted advisory practice
Industry thought leaders
GP Medical Practice data mining specialists
Most accurate industry financial & valuation benchmarks
Exclusive, scalable AUS/NZ non-financial KPI data
Our clients - helping them to become an industry Top Performer
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