Healthcare · Realised
Better Medical
Private billing and family focused general practice clinics.
At a glance
Sector
Health
Invested
June 2017
Realised
January 2021
Status
Realised
Acquired by
Livingbridge
The headline
6→35
Clinics, entry to exit
30→200
General practitioners
3yrs
Held, 2017 to 2021
Background.
- Owner and operator of private and mixed billing family style general practice clinics, with a strong focus on high quality medicine and patient outcomes.
- The Fortitude team invested in June 2017 and again in December 2019, primarily to fund consolidation and build out a platform.
- A proprietary deal. We worked directly with the founders on the transaction.
Our investment thesis.
- A resilient front line healthcare market: very large, well supported, highly fragmented, and served poorly by the existing corporate players.
- Build out the existing six-clinic platform by recruiting a professional management team, investing in clinical support, and executing a buy and build.
- Organic earnings uplift through revenue and cost synergies, alongside non-financial gains in patient outcomes and in doctor and clinical staff satisfaction.
- Build a leading national platform in the private and mixed billing space, with a long runway of growth in a very large market.
Our results.
- A professional management team was built out, including recruits from Fortitude's network, alongside a clinical advisory framework and board and a dedicated acquisitions team.
- Clinics grew from six to thirty-five and general practitioners from thirty to more than two hundred. Acquired clinics increased earnings by around thirty-two per cent after acquisition.
- The business was sold to Livingbridge as its entry platform into the Australian general practice market. SmartClinics, a group of around twenty-five clinics, came under Better Medical's management at exit, taking the combined group to fifty-nine clinics.
Past performance is not a reliable indicator of future performance, and figures drawn from individual deals executed on a deal-by-deal basis are not representative of a pooled fund. Wholesale investors can request the full record.
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