Taxes on Sale of Healthcare Practices Roll-Up
Hi All, I'm modeling the returns for a roll-up of medical practices. The owner (self-financed) currently has 7 and would like to add another 13 over the next two years prior to exiting in 2025/26. I have a few basic questions.
1. After-Tax Free Cash flow: I assume the 20 practices sell at an EBITDA of 6x TTM at year end 2025, and that the capital gain is taxed at 21%. Is that tax treatment a fair way to assess it? Or are there much more tax efficient ways of structuring an exit to not be fully taxed on sale?
2. Calculating the capital gain: I'm just taking the assumed sales price of the portfolio, minus aggregate purchase price of the 20 practices. Anything I'm missing here? Should I also deduct capex made to improve the various practices?
Thanks!
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