Medistart

Presentation of the company

SAS Medistart is the holding company set up in 2018 to acquire SARL Comados active in the orthopedic and specialized footwear sector. SARL Comados, currently managed by Philippe Anton and his wife is based in Paris 11. The orthopedic cabinet existes for more than thirty years and has a good geographical position.

The company’s main activity is: orthopaedic consultation and specialized footwear sales.

The company works with a diversified individual client base with aroud 6 consultations per day.

After years of exploitation, Mr Anton and his wife want to retire.

Mr Hadji is a qualified health professional. He worked for 10 years as a “pharmacy dispenser” and since 2012 he is specialized in orthopaedics. He has developed and managed the orthopaedic activity within a pharmacy in Villetaneuse for 4 years.

He will work in pairs with his wife, in charge of the sales and administrative part. 

Project Description

Mr. Anton wants to sell his company, SARL Comados valued 195 000 €, valuation based on standard of the market. Mr and Mrs Hadji via a dedicated company wish to borrow 162 000 € over 60 months to finance the acquisition of the company. The balance will be financed by the buyers personal contibution. This project will be realised by the end of the year.

The amount offered on the platform is limited to 79 380€, which is in line with the regulatory limits.

Like all projects presented to individual lenders on October, it is co-financed with institutional investors, sophisticated investors, and the management of October, subscribers to the October Fund.

Analyst’s Opinion

The borrower is a holding company dedicated for the acquisition whose revenues are derived from services invoiced to its subsidiaries. The financial analysis was carried out on the financials of the target company.

With a turnover of 287 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

In 2016 and 2017 the decrease in turnover is driven by a withdrawal of the seller who wishes to retire. The forecast is based on 2017 performance taking into account wages savings.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,29 and a strong financial structure, with a forecast net debt / ebitda ratio of 0,68 and a net debt / shareholder equity of 111%.

taking into account the buyer personal contribution.

The analysis of the project leads to a credit rating of C and a 8.2% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Good repayment ability with a forecasted FCCR of 1,29.
• Good geographical position.

Point of caution:

• Ownership change risk.