Selling a Healthcare Business: Due Diligence, EBITDA Multiples and Managing Legacy Risk
In part 2 of our wide-ranging discussion with Adrian Richards, Medical Director at iQonic Aesthetics and one of the pioneers of private medical practice, we discuss how to sell a healthcare practice or business.
Adrian has both sold and bought multiple healthcare businesses and draws on his experience selling Aurora Surgical Business Group Practice to The Private Clinic in 2016 and later helping acquire other clinics.
He describes sales as stressful, negotiation-heavy processes where deals can fail at due diligence, with buyers scrutinising finances, records and every risk “under the floorboards.”
The conversation highlights how private equity researches sectors deeply, prices uncertainty as risk, and uses that to discount EBITDA multiples.
Adrian and the hosts stress building a strong, compliant business with robust systems that can operate beyond the founder, and keeping “data room ready” documentation, including logs and reporting of clinical issues, complaints and potential liabilities.
They emphasise consent, complaint-handling, insurability limits, privacy/security exposures, and managing legacy risks that can reduce value by millions.
Episode timestamps
- 01:21 Lessons from selling Aurora
- 01:58 The reality of due diligence
- 02:39 Understanding how Private Equity thinks
- 03:41 Why you need to build value and reduce risk
- 05:11 The importance of reporting and risk logs
- 07:14 Pricing the risks
- 07:46 EBITDA multiples explained
- 09:32 Make a healthcare business sellable without you
- 10:15 Life after the exit
- 10:40 Acquisitions in the UK sector
- 11:15 The entrepreneur mindset and insurance
- 12:44 Due diligence deal killers
- 13:15 Handling complaints in the right way
- 14:01 Legacy liability planning
- 14:49 Data room ready systems
- 15:15 How underwriters price risk
- 17:37 Exit strategy advice
- 19:16 Process notes defensibility
- 20:31 The benefit of keeping claims low
Follow Adrian and iQonic Aesthetics
iQonic profile - https://www.iqonicaesthetics.com/doctors/mr-adrian-richards
LinkedIn - https://www.linkedin.com/in/adrian-richards-50638411
Real Self - https://www.realself.com/dr/adrian-richards-london-united-kingdom
iQonic website - https://www.iqonicaesthetics.com
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