Accident Specialist Hunts £100m Sale Partner
A provider of medical reports is eyeing a deal that would make its boss one of Britain's richest doctors, Sky News understands.
Wednesday 4 June 2014 12:04, UK
One of Britain's biggest providers of medical reports on negligence victims is preparing for a sale that could crystallise a £100m windfall for its shareholders.
Sky News understands Doctors Chambers, which was established 20 years ago, has appointed Cavendish Corporate Finance, an advisory firm, to sell a stake to outside investors.
Doctors Chambers specialises in the provision of expert medical advice to the legal and medical professions, principally in cases of alleged clinical negligence.
The business has performed robustly, having been buoyed by the growth of so-called 'ambulance-chasing' claims management companies.
Sources said the company was aiming to sell a stake of undisclosed size, with the proceeds likely to be partly used to fund further international expansion.
The key beneficiary of a sale is expected to be Dr Bippon Vinayak, Doctors Chambers' chairman.
In addition to its core business, which comprises a network of 5,000 medical experts, Doctors Chambers has a number of sister companies including Bodycare Services, which offers rehabilitation services; DC Life, which supplies medical screening to life assurance and occupational health clients; SmartOnline, a software company; and Document Plus, which targets solicitor and insurance clients with secure document services.
Sales during the year to March 31, 2013, the last for which accounts have been filed at Companies House, rose by 17% to £12.9m, .
In the accounts, the company said it supported Ministry of Justice proposals to establish independent medical panels for the assessment of whiplash injuries.
It added: "The company recognises that as the market has become saturated and competitors seek to increase market share there may be further pressure on margin by either higher level of marketing fees or lower prices being agreed with the insurance industry.
"Doctors Chambers are seeking to further improve the operational efficiencies and service provision to reduce any effect on margin."
Cavendish declined to comment, while Doctors Chambers could not be reached for comment.