Listing ID: 64172
30+ years time in business with 14 years or more at the same location. Owner is willing to stay on for a couple of years if required but will be subject to final approval. Based on his earnings and the recurring revenues this should be a good opportunity to further grow the practice. Dental practice has been in the same location for over 13 years with roughly 3600 recurring patients.
The Dentist was formally located in another area for over 24 years before moving to the present location He has a 7/31 year end and over the last 3 years revenues have averaged over $500K.The practice has 2500 square feet of space and the lease is very affordable with another 5 years left on it. In the space he has 3 Dr. Chairs and 2 hygiene. He has 6 areas that are plumbed and 5 that have equipment attached to each area. Total employees he has are three full time employees and one part time employee.
Consist of Office Manager, Assistant, Hygienist, and temporary staff member.
Positions and their annual wages or salary?
• Front Desk/Off Manager ….$30/hr
• Temporary staff………………….$10/hr
- Asking Price: $414,000
- Cash Flow: N/A
- Gross Revenue: $500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1985, making the business 37 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell operating businesses. Nonetheless, the true reason vs the one they tell you might be 2 absolutely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of various other reasons. This is why it is extremely essential that you not count completely on a vendor's word, however rather, use the vendor's response together with your total due diligence. This will paint a more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Many times, businesses have repeat clients, which develop the core of their everyday earnings. Specific elements such as brand-new competition sprouting up around the area, roadway construction, and employee turnover can influence repeat consumers and also adversely affect future revenues. One essential point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the regional average house income effect future income prospects?