General practice is supposedly dying, so why are investors stalking GP clinics?
Think economies of scale, loyal patient bases, and private equity optimism, an expert says.
If GP corporates run on tiny profit margins, why do they sell for hundreds of millions of dollars?
“It’s a good question because it doesn’t make much logical sense on face value, does it?” says Nicholas Larter, analyst at market research company IBISWorld.
“Someone says, ‘My business barely makes money, and by the way, do you want to buy it for $300 million?’
“If the margins were good, the seller wouldn’t be selling.”
