Investment Memorandum: Profitable Physiotherapy Practice
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- 3 days ago
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Investment Memorandum: Profitable Physiotherapy Practice
Highly Profitable and Well-Established Physiotherapy Practice Location: Central, Hong Kong
I. Executive Summary
This memorandum outlines an exclusive investment opportunity to acquire a highly profitable and well-established physiotherapy practice, hereinafter referred to as the "Company" or the "Seller," located in the prime business district of Central, Hong Kong. The Company is a proven, high-growth healthcare provider with a loyal, high-value corporate client base. The management team believes the current favorable M&A climate in Hong Kong presents a prime opportunity for a strategic sale.
Key Metric | Detail |
Industry | Healthcare (Physiotherapy, Wellness, & Beauty Services) |
Location | Central, Hong Kong |
Total Projected Revenue (2025) | HK$5,234,980 |
Expected Valuation Range | HK19,500,000 to HK26,000,000 |
Valuation Multiple | 3X to 4X Revenue Multiple |
Target Closing | Q2 2026 (June 2026) |
II. Company Overview
The Company is a reputable physiotherapy practice known for its sustainable and remarkable growth, particularly since the start of 2025.
Core Services: Comprehensive physiotherapy treatments, recently expanded to include ancillary beauty and wellness services, offering an integrated health approach.
Facilities: Operates from two adjacent clinic spaces totaling approximately 1,200 sq/ft in Central, Hong Kong.
Operational Milestones (2024-2025): The Company has successfully expanded its clinic space (Q4 2024), hired a Channel Manager for client outreach (Q1 2025), and onboarded a General Manager (Q2 2025), demonstrating a commitment to operational scaling.
III. Financial Summary & Projections
The Company has demonstrated strong financial performance and a robust growth trajectory, supported by strategic operational enhancements.
Performance Snapshot (2025 Projected)
Metric | Detail |
Total Projected Revenue (2025) | HK$5,234,980 |
Revenue Growth | Peak Year-over-Year (YoY) growth of 101% achieved in October 2025. |
Current Cash Position | HK$625,031.91 (as of Nov 16, 2025) |
Future Revenue Projections
The business is strategically positioned for continuous growth, with management projecting significant revenue increases over the next two years:
Fiscal Year | Expected Revenue |
2026 | HK$6,500,000 |
2027 | HK$8,500,000 |
IV. Market & Client Profile
The Company's success is underpinned by its specialized focus and highly valuable client demographics.
Client Base: A loyal and high-value patient base of 1,442 clients (as of Nov 16, 2025).
Demographics: Over 95%+ of clients are corporate workers with high credentials, indicating low credit risk and a high capacity for recurring services.
Client Acquisition: Maintains a high first-time customer conversion rate of 70%+ organically in 2025.
Recurring Revenue: A minimum of 20 customers renew service packages monthly, averaging HK$13,500 per package.
Corporate Partnerships & Sponsorships: The Company has secured key partnerships, including corporate wellness days with major firms like Morgan Stanley, Bank of America, Prudential, and Standard Chartered Bank, solidifying its access to the high-value corporate segment.
V. Future Growth Potential
The Company has a clear, two-phase expansion plan designed to further diversify services and capture the entire client health journey, projecting to sustain over HK$500,000 in monthly revenue.
Phase | Timeline | Strategy | Projected Impact |
Phase 1 | Q1-Q2 2026 | Hire 1 additional Senior Health Consultant and 1 Physiotherapist. | Reduce wait times and increase core physiotherapy revenue. |
Phase 2 | Q3-Q4 2026 | Expand to a new unit for a dedicated Gym, Clinical Pilates, and Gyrotonic exercise space. | Capture entire client journey (injury to peak performance), generating an additional HK150,000 to HK300,000 in monthly revenue. |
VI. Transaction Details & Process
Expected Company Valuation
The Seller is targeting a sale based on a multiple of its projected revenue, placing the business within the following range:
Metric | Hong Kong Dollars (HK$) | US Dollars (US$) |
Minimum Expected Valuation | 19,500,000 | 2,506,427 |
Maximum Expected Valuation | 26,000,000 | 3,341,902 |
Expected Timeline for the Sale
The proposed transaction will follow a disciplined three-phase approach targeting a successful exit by June 2026:
Timeline | Key Activities |
Q4 2025 | Solidify financials with year-end audit; Prepare and distribute Investment Memorandum. |
Q1 2026 | Secure Non-Disclosure Agreement (NDA) and Letter of Intent (LOI); Prepare comprehensive investment data room for qualified buyers. |
Q2 2026 | Finalize Sales and Purchase Agreement (SPA) and proceed to Closing; Shareholders' Investment Distribution. |
Disclaimer: This summary is for informational purposes only and is based on a public business-for-sale listing. It does not constitute an offer to sell or a solicitation of an offer to purchase any security or interest. The full Investment Memorandum, comprehensive financials, and operational details will only be made available to qualified buyers under a signed Non-Disclosure Agreement (NDA).
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