Transaction brief
Acquiring a medical imaging clinic in Toronto
Supporting a private investor's Toronto imaging-clinic acquisition through off-market sourcing, LBO modelling, valuation, negotiation and financing design.
The mandate
Support a private investor's entry into Canada's medical-imaging market through the acquisition of a single-site Toronto clinic for less than CAD 10 million. The investment screen targeted a levered IRR of at least 12%; this was an underwriting target, not a statement of a realised return.
The challenge
Identify an off-market acquisition that met the investor's budget and return criteria while competing with private-equity-backed consolidators paying premium multiples. Evaluate payer mix, revenue growth, leasehold capital expenditure and financing sensitivity before committing capital.
Our approach
- Off-market target sourcingScreened 41 clinics and shortlisted four, securing exclusivity on the preferred asset in week five.
- LBO modellingBuilt an eight-tab leveraged buyout model in 48 hours, including revenue ramps, payer-mix sensitivity, leasehold capital expenditure and scenario IRRs.
- Valuation and negotiationCombined DCF valuation with precedent EBITDA comparables and negotiated a transaction at 7.8x EBITDA.
- Financing and transaction supportDesigned a senior bank term loan at 60% LTV, priced at SOFR plus 350 basis points, alongside a seller note, reducing the equity cheque to 38% of the purchase price. Supported offer documentation, asset valuation, negotiations and closing.
The outcome
- Focused acquisition processThe sourcing process progressed from 41 screened clinics to four shortlisted targets and exclusivity in week five.
- Negotiated entry valuationThe transaction was agreed at 7.8x EBITDA, 15% below the market benchmark used in the project analysis.
- Reduced equity requirementThe senior debt and seller-note structure limited the equity cheque to 38% of purchase price.
- Entry into the Toronto imaging marketThe acquisition established the investor's presence in the sector. The 12% IRR remains an underwriting target, not a claimed realised outcome.
