1. Starting a clinic afresh means having no patients from day one. It is a long and painful process for some clinics to build up their patient base till the day when the clinic starts making money.
2. Taking over a clinic gives the clinic owner a patient base to start off with. Existing clinics comes with existing patient base where the takeover clinic can tap on. However, there will be drop off rate from the existing patient pool. The drop off rate can range anywhere from 20% to more than 50%
3. For new clinics, one of the main costs is the renovation and fire safety certification. Some of the existing clinics come as a well fitted clinic and with fire safety certification though. Costs will be saved in this aspect but of course the selling clinic will probably ask for a higher takeover fees because of this.
4. Some existing clinics come with long time clinic assistants and managers. These are frontliners of a clinic. If the existing staff of the outgoing clinic is willing to stay to continue to work with the takeover clinic, this will be a plus point as most patients feel assured with the existing staff still around.
5. For some of the outgoing clinics, the doc/doctors is/are willing to stay and continue working too. This again, also comes as a plus point to investor clinics; who sometimes have challenges in hiring doctors themselves.
6. Sometimes, an outgoing clinic is located in a strategic spot where the takeover clinic is unable to find an equally good spot in the area. Hence, it makes sense for the buyer clinic to takeover the existing clinic.
7. Sometimes, the outgoing clinic is located in a mall. And under most malls that are managed by Property firms or developers; most of the time , there is a certain quota that allows only a certain number of clinics to be in the mall. So, the only option left for the investor clinic is to take over the clinic in the mall if the targeted premises is to be in the mall.
8. Still, there is the ‘risks’ of the takeover clinic paying too much for the takeover fees of the existing clinic. Due diligence will have to be done to assess the clinic.
