Harrison Beale and Owen assist in the management buyout of local physiotherapy and sports injury clinic
19th February 2018
A physiotherapy and sports injury clinic in Leamington has undergone a management buyout.
Karen Smith has taken over The Cloisters Physiotherapy and Sports Injury Clinic on Lower Leam Street from Ruth Cowan, who originally founded the business in 1983.
Karen, who has worked at The Cloisters for more than 20 years, was able to purchase the business from Ruth following assistance from the corporate finance team at HB&O.
Plans are also afoot for the business to expand its home visit service to meet a shortfall in what the NHS is able to provide.
Currently two physiotherapists work from the clinic to deliver home visits, but with the NHS under pressure to free beds up for patients to avoid bed-blocking, Karen is planning to provide more services for needing treatment in their own home.
The Cloisters provides physiotherapy treatment for those with Musculoskeletal problems and neurological conditions. Its premises also has a gym and hosts Pilates and modified T’ai Chi classes.
After spending more than 20 years growing the business into a 10-strong team of highly qualified physiotherapists serving around 600 clients a month, Ruth sold the business to Karen at the end of 2017.
Karen said: “I’m really grateful and excited to be given the opportunity to continue to develop the great reputation that Ruth has built for this business over the years.
“We are continuing to grow via word of mouth referrals but not everybody that needs our help can get in to the clinic, particularly some elderly people who are being discharged from hospital earlier than normal, this is why we are looking to expand the number of physiotherapists who can carry out home visits.
“The long-term vision is to be able to support those people who are being discharged earlier from hospital by providing them with a high level of care in the comfort of their own home.”
Karen has also appointed a new practice manager, Dominic Green, to oversee the day-to-day running of operations.
Greg Philp, head of corporate finance at HB&O, and associate director, John Walton, oversaw the management buy-out and worked with Barclays to structure a loan, while Coventry solicitors Band Hatton Button and Claric Legal Services completed the legalities.
Greg added: “Ruth wanted to retire without impacting the business and came to us for advice, whereby we have managed to structure a deal that has enabled a long-serving employee to take over the reins.
“Buying a business is a complex transaction with various obstacles to get round – such as coming up with the right price and terms for the purchase, raising the necessary finance and navigating the legal process – and we were able to help guide Karen through all of this.”
John added: “Hopefully this story sends out a positive message to other business owners considering retirement – by enlisting the right financial expertise and guidance, it is possible to hand over control to people already working around you.”