Provider Performance

Exit

Build the business buyers want to acquire.

The best time to prepare an NDIS business for exit is before the decision to sell. Provider Performance helps owners strengthen earnings, reduce business risk and build the organisational capability that supports enterprise value.

Discuss your business Explore the Performance Review

What buyers look for

01

Maintainable earnings

Quality and sustainability of EBITDA

02

Management depth

Capability beyond the owner

03

Business risk

Concentration · Compliance · Key people

04

Growth potential

Credible opportunities beyond current earnings

Transferable enterprise value

Value that can survive a change of ownership.

Enterprise value

Buyers value what the business can sustainably earn in the future.

Two NDIS providers with similar revenue can have materially different enterprise values. What matters is not only the level of earnings, but their quality, sustainability, risk and ability to continue under new ownership.

  1. Revenue01
  2. Normalised EBITDA02
  3. Maintainability03
  4. Risk04
  5. Growth potential05
  6. Enterprise value

Revenue establishes scale. Maintainable earnings, organisational capability and business risk influence what that scale is worth.

Buyer perspective

What would a buyer find if due diligence started tomorrow?

A transaction subjects the business to a level of scrutiny that many owners have never previously needed to apply. Preparing earlier creates time to identify weaknesses, strengthen evidence and address issues before they affect transaction confidence or value.

01

Earnings quality

Are reported earnings genuinely maintainable?

02

Owner dependency

What stops working when the owner leaves?

03

Management depth

Can management operate the business independently?

04

Participant concentration

How dependent is revenue on individual participants, referrers or funding arrangements?

05

Workforce

Is the workforce model stable, productive and economically sustainable?

06

Financial controls

Can the numbers withstand buyer scrutiny?

07

Compliance and governance

Are there matters capable of affecting transaction confidence or value?

08

Growth

Is there a credible pathway for the next owner to grow earnings?

A buyer will investigate these issues eventually. Finding them before the buyer does gives the owner time to do something about them.

Quality of earnings

Not all EBITDA attracts the same multiple.

Enterprise value is influenced not only by how much a business earns, but by the quality, sustainability and transferability of those earnings.

Stronger value characteristics

  • +Management depth
  • +Diversified earnings
  • +Lower owner dependency
  • +Reliable reporting
  • +Repeatable performance
  • +Clear growth opportunities

Value constraints

  • −Owner dependency
  • −Revenue concentration
  • −Unclear profitability
  • −Weak management reporting
  • −Key-person risk
  • −Unresolved operational issues

The objective is not simply to increase EBITDA. It is to improve the quality of the EBITDA being valued.

Exit readiness

Don't wait for due diligence to discover what needs fixing.

The earlier value constraints are identified, the more opportunity ownership has to address them before a transaction.

Early preparation

Build performance and management capability

Exit planning

Reduce owner dependency and address value constraints

Transaction readiness

Normalise earnings, strengthen reporting and prepare evidence

Transaction

Position · Prepare · Due diligence · Negotiate

Exit readiness is not an event immediately before sale. It is the process of building a business capable of performing, transferring and standing up to scrutiny.

Our perspective

We look at the business as an operator, an owner and an acquirer.

01

Operator

How can the business perform better?

Focus

  • Margin
  • Utilisation
  • Labour
  • Overhead
  • Cash flow

02

Owner

How can the business become easier to manage and less dependent on ownership?

Focus

  • Management
  • Accountability
  • Reporting
  • Decision rights
  • Owner dependency

03

Acquirer

What would increase confidence, reduce perceived risk and strengthen the investment case?

Focus

  • Maintainable EBITDA
  • Management depth
  • Risk
  • Transferability
  • Growth potential

The strongest businesses work from all three perspectives.

Building value

Enterprise value is built before the transaction.

A stronger transaction outcome begins with a stronger underlying business. Performance, management capability and lower business risk create the foundations for value.

01

Performance

Improve the economics.

02

Scale

Build the organisation.

03

Exit

Make the value transferable.

Stronger enterprise value

The starting point

Understand what may be helping — or limiting — enterprise value.

The Provider Performance Review can examine the business through both an operating and transaction lens, identifying issues that may influence maintainable earnings, business risk and eventual enterprise value.

For exit readiness, the Review can examine

  • Maintainable EBITDA
  • Normalisation adjustments
  • Service-line profitability
  • Owner dependency
  • Management depth
  • Participant concentration
  • Workforce risk
  • Financial reporting
  • Governance and compliance exposure
  • Growth opportunities
  • Transaction readiness
  • Indicative valuation range where sufficient information is available

You receive

  1. 01Priority value constraints
  2. 02Normalised earnings view
  3. 03Enterprise-value considerations
  4. 0490-day priorities
  5. 0512–24 month value-creation roadmap
Discuss a Performance Review

Before the transaction

The work starts before the business goes to market.

Preparing a business for exit is different from running a sale process. Provider Performance works with ownership before and during exit preparation to strengthen the underlying business, improve transaction readiness and address issues that may influence value.

Build the business

  • Performance
  • Scale
  • Management capability
  • Maintainable earnings
  • Risk reduction
  • Exit readiness
→

Transaction

  • Positioning
  • Buyer engagement
  • Due diligence
  • Negotiation
  • Completion

Confidential discussion

Don't start preparing for exit when you're ready to sell.

Whether an exit is six months away, three years away or simply an option for the future, understanding what drives the value of the business gives owners more choices.

Request a confidential discussion

All initial conversations are strictly confidential.

Or call Scott Williams on 0436 604 173