The market opportunity
The allied health services industry in Australia is a highly fragmented market with a large number of small practices. It is also a market experiencing significant growth with a rising demand for services.
Allied health is ideally placed as delivery moves to services more holistically centered on patients’ sustained well-being, rather than responding to illness.
Advent Health was formed in direct response to these market conditions, as it has seen a significant opportunity to not only improve the industry conditions for patients, but create improved industry standards for it’s clinicians.
$10.8bn allied health market
Australian physiotherapy, chiropractic, osteopathy, mental health and other health services.
Industry growth 3%+
Annual Industry growth 2014-19*.
Low revenue volatility
Cyclical growth sector, low levels of reliance on government funding, low levels of revenue volatility.
Rising demand for services
Ageing population, rising household incomes with health consciousness is driving demand for services.
The future of Australian
allied health care
Advent Health has consolidated a group of allied health practices in a highly fragmented industry into a sustainable business that
maintains and enhances profitability and clinical outcomes.
The investment opportunity
Growth
market
Growing demand for allied health services and scalable business model to consolidate for future growth.
Leading
portfolio
Australia’s largest multi-disciplinary allied health business, with first mover advantage.
Experienced
team
Board and senior management team with demonstrated expertise in allied health care.
Competitively
priced
Relative to its listed peers, Advent Health will be competitively priced for investors.
High performing
businesses
Complementary businesses trading at strong EBITDA margins and revenue growing above industry growth.
Vendor
engagement
Advent Health’s model engages with vendors clinically and financially long term to ensure clinicians are aligned.
Pipeline of
opportunities
Identified 20+ acquisition and organic growth opportunities across the group to increase EBITDA.
Disciplined
approach
Acquisition strategy that is disciplined to build a group with economies of scale and group management benefits.
Key portfolio features
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Greatest access to clinics - largest multi-disciplinary allied health services provider by number of clinics nationally.
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Largest clinic in Australia - for multi-disciplinary allied health services with 23 rooms and 1,300 sqm with dedicated gym space. Offering podiatry, physiotherapy, sports medicine, chiropractic, massage therapy, exercise physiology, dietetics and specialist services (including our own in-house orthotics laboratory).
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Largest single allied health service provider - to a Primary Health Network (PHN) in Australia. PHN's are becoming the gateway to government funding for health services in Australia.
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Largest Queensland and New South Wales groups - by number of clinics providing multi-disciplinary allied health services.
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Provider of specialist allied health services to a number of Australia's largest private health insurers (PHI).
Operational Presence
Growth model
Clinically focused multi-disciplinary model that drives organic growth and clinician retention
Structure
Centralised web-based practice management system.
Data analysis to support clinician needs.
Operation of an orthotics laboratory.
Margin improvement from utilisation of existing locations and integrated offering.
Centralised ordering for consumables and orthotic manufacture.
Strategy
Centralised support including benchmarking and coaching.
Targeted marketing and patient retention strategies.
Clinician retention and education programs – upskill and increase range of services.
Retain existing community focused branding.
Well equipped practices.
Multi-disciplinary
Roll out new multi-disciplinary allied health practices.
Introduction of additional services to practices.
Cross referrals using multi-disciplinary service offering – better patient engagement and health outcomes.
Patient focused with wellness care.
Utilise tele-health and home care to increase access to services.
Management
Vendor clinics supported by experienced Board and management team.
Team have experience in running multi-site allied health businesses.
Vendors continue to be involved in their groups and engaged through share of profit growth.
Clinical Advisory Committee – driving clinical governance, compliance and education programs.
Targets
Strategic acquisitions, supported by disciplined investment criteria.
New acquisitions, with further growth driven by acquisition of target businesses.
First to market for multi-disciplinary care, fragmented market prime for expansion opportunities.
Market leading practices
High performing businesses with excellent reputations and profiles in their geography. Revenue growing above industry growth rates.
Systems and support
Experienced team with demonstrated expertise in allied health care. Best practice centralised systems for support and practice management.
Expansion and growth opportunities
Organic and acquisition growth strategy that ensures Advent Health expands its current footprint as well as the services offered.
Vendors aligned
Advent Health has engaged with vendors clinically with a long-term strategic vision that will ensure they are aligned and benefit financially.
Growth market
Rising demand for services from an aging population, health conscious consumers and the desire for wellness programs. Low levels of industry revenue volatility.
Defined listing pathway
Competitively priced for investors. Q2 2020 listing.
