Private general practice network Better Medical transforms under Fortitude Investment Partners, generating significant returns in sale to UK growth equity fund.


Better Medical, a private/mixed billing family-style general practice clinic, was committed to high-quality medicine and patient outcomes with six clinics and 30 GPs across South Australia. Fortitude Investment Partners saw an opportunity and invested in June 2017 and again in December 2019 to fund consolidation opportunities and expand Better Medical’s platform.

Our results

The partnership with Better Medical led to a annual return to investors of 32% p.a. after the sale to Livingbridge (a UK growth equity fund) in January 2021.

82%

COMPOUND ANNUAL GROWTH RATE ON EBITDA

32%

INCREASE IN CLINIC EARNINGS POST ACQUISITION

59

CLINICS OPENED.

UP FROM six

CHALLENGES OVERCAME

  • Recruiting and establishing a professional management team to oversee the expansion of Better Medical, utilising Fortitude’s network and identifying the right fit for the healthcare sector.

  • Implementing a consolidation strategy in the competitive and fragmented healthcare market, requiring in-depth industry knowledge, strategic foresight, and dedicated M&A resources to ensure successful execution.

  • Managing and improving the diverse needs of patients, doctors, and clinical staff to create a harmonious and efficient working environment, while also maintaining a reputation for high-quality healthcare services and patient outcomes on a national platform.

 

Investment reaso

ning

An opportunity arose thanks to the resilience of the front-line healthcare market and the potential for a unified platform of high-quality GP clinics. Significant organic earnings and non-financial benefits were clearly attainable by creating a leading national platform respected by patients, doctors, and clinical staff, offering sustainable growth in a large market.

2017.

 
 
 

SIGNIFICANT IMPROVEMENT IN EARNINGS

With the expansion of new locations, EBITDA grew at 82% CAGR to $10.9 million at exit. We identified and leveraged opportunities for both revenue enhancement and cost synergies, resulting in an impressive ~32% increase in clinics' earnings post-acquisition.

 
 

 SUCCESSFUL EXPANSION INTO NEW LOCATIONS

Through a strategic consolidation strategy and Clinical Advisory framework, the management team grew the number of clinics to 35 at exit, spanning across South Australia, Tasmania, Queensland and Victoria. A smaller group known as SmartClinics also fell under Better Medical’s management, bringing an extra 25 clinics for a total of 59 established across Australia.


 
 
 

FORMATION OF PROFESSIONAL MANAGEMENT TEAM and NEW STAFF

We recognised the value of a skilled management team in driving organisational efficiency and growth. Thus, we embarked on a recruitment drive, bringing in professionals from Fortitude’s network to facilitate Better Medical's expansion and performance. At the exit, the number of GPs operating across the clinics also grew from 30 to over 200.

 
 

SUCCESSFUL EXIT STRATEGY

Our growth and consolidation strategy culminated in a successful exit, selling the business to Livingbridge as their entry platform into the Australian GP market.