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BUSINESS REFERENCE : CK003 / RightBiz LOCUM INSURANCE FOR MEDICAL PRACTITIONERS | | | | | | Locum Insurance for Medical Practitioners Confidentially offered for sale Ref No:CK003 Location: South East Asking price: £1,500,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Insurance Brokers | | SALE: | Agent Sale | LEASEHOLD: | £1500000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile
This highly successful business was established by the current owner just three years ago. In the short time since inception it has already developed a reputation as the Locum Insurer of choice within the medical profession, offering excellent service at highly competitive prices, typically some 50% of the premiums of competitive offerings.
The business exists to adequately insure individual doctors and larger practices, against the cost of a locum, when the doctor is unavailable to work due to sickness. This is a large market place: there are 42,500 doctors and 11,800 surgeries in the United Kingdom. The company enjoys a market share of circa 2%, yet it is growing by more than 15% per annum.
The business currently services circa 1,000 doctors. Unusually in any insurance scenario, a very high renewal rate of 98% is experienced. This is largely due to the very high service levels and competitive pricing. There is also a great deal of inertia in the market: doctors do not have the time to search for alternative providers as there is so much demand on their time.
Most new business is obtained through the company’s full e-commerce website, although a sales executive has just been recruited to drive accelerated growth. The business does also gain new business through referrals and direct ‘word of mouth’ recommendation.
The company insures directly with Lloyd’s of London underwriters through a dedicated broker. The business is regulated by the Financial Services Authority.
Equipment
As the internet is the main channel to market, data security and integrity is critical. The business utilises five main servers, which are in various locations around the world. Each server has the ability to replicate another, ensuring constant availability of service.
Customer Service
Very little contact is made directly with clients as the whole process is completely automated. The process is however easy to understand and very user friendly.
Key Strengths
This is a sound business, operating in a market with sustained demand. With low overheads and complete automation of process, policy pricing is some 50% of competitive offerings. The above qualities result in a renewal rate of 98%, an almost unheard level of success.
Doctors appreciate the claim process as it is easy to use, as follows:
• The doctor notifies the company that he is sick.
• A ‘pdf’ claim form is downloaded from the website.
• The form is completed and submitted.
• The claim is paid directly by the underwriters.
The benefit to the company of the above process is that very little effort is required by them.
Growth and Expansion
To date, the company has not aggressively followed up new enquiries received through the website, as the current owner has been satisfied with the level of new business. A new owner, with renewed vigour and enthusiasm, will be able to accelerate growth through more aggressive pursuit of new business opportunities.
Key Opportunities
This is a replicable business model that can be applied to a number of markets where specific, typically professional, skills are needed. The company has just started to market to the veterinary profession. Other markets could include the legal profession for solicitors and barristers, accountants and airline pilots: anywhere where the cost of loss of people availability is expensive.
Employees
With the exception of the owner, the business employs a full time office manager and the recently recruited sales executive.In addition, an IT systems development and support facility is provided through a dedicated person operating from Malaysia.
Advertising and Marketing
To date, with the exception of the website, the only marketing activity undertaken has been to exhibit at the Practice Management Exhibitions in London, Birmingham and Manchester.
The business has reached the stage where the development and execution of a strategic marketing plan, addressing all media activities, would be beneficial.
Premises
The company is currently located in excellent serviced offices in a modern business park just thirty miles from Central London. The premises are secured on a twelve month contract at an all inclusive monthly rent of £850.
The business is, of course, readily relocatable and could be effectively run from a home office.
Financial Information
The business is being offered for sale on a going concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable with low levels of borrowing and enjoys a strong trading profile with high gross margins and has shown consistent performance since trading begun. Turnover in the current financial year is forecast at £400,000 per annum.
Reason for Sale
The current owner is looking to dispose of his interest in the business to enable him to focus on other activities.
Support and Training
A full training, handover and familiarisation period will be provided to ensure a smooth transition to new ownership. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CK003 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
