Business Overview

Private Practice Transitions is assisting in the sale of a respected and growing physical therapy practice with three locations in northwestern Washington. Providing physical therapy services to countless clients, the owner opened the first clinic more than 20 years ago then added additional locations in 2007 and 2016. All three clinics have seen consistent YoY growth prior to the COVID-19 pandemic. From 2019-2021, the average gross revenues were ~$1,423,355 with 2021 gross revenues at $1,536,577. The 2020 revenue suffered due to the Washington State Governor’s mandate to only treat essential patients during the initial phases of the pandemic. The Practice has rebounded due to its superb reputation throughout the community. A staff of 19, including the owner, are treating 700 active clients as of April 2021. There are 5,000+ clients in the Practice’s database. With steady growth expected in the area, all three clinics are positioned for continued success and profitability. If you are interested in buying an established 3-location physical therapy practice with a proven track record, call us at 253.509.9224 or send an email to info@privatepracticetransitions.com, and include “1125 Established PT Practice with Three Locations” in the subject line.

Financial

  • Asking Price: $1,300,000
  • Cash Flow: N/A
  • Gross Revenue: $1,695,390
  • EBITDA: $240,825
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1999

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3 Locations

Is Support & Training Included:

Owner willing to support new owner in transitions for one year.

Additional Info

The company was founded in 1999, making the business 23 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell operating businesses. However, the genuine factor vs the one they say to you may be 2 completely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competition, recent reduction in earnings, or a variety of other reasons. This is why it is really vital that you not count entirely on a vendor's word, yet instead, use the vendor's response together with your overall due diligence. This will paint an extra sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover things like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also 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 suppliers that must be met or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in new consumers? Often times, companies have repeat clients, which form the core of their day-to-day profits. Particular variables such as new competition sprouting up around the location, roadway building and construction, and staff turn over can influence repeat clients and negatively affect future incomes. One important point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the higher the opportunity to develop a returning customer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? How might the local median family earnings effect future revenue potential?