Business Overview

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BUSINESS SUMMARY:

This Company is a behavioral health practice based in California. It was founded in 2005, the practice has steadily grown over the past 16 years from a one clinician private psychotherapy practice to a sophisticated operation with a team of mental health professionals specializing in sex therapy and sex addiction treatment. The practice provides individual, couples, and group therapy, as well as intensives, workshops, and professional training. The company provides local clients with in-person treatment by way of their California office and reaches clients nationwide and internationally by providing virtual sessions via Zoom.

INVESTMENT CONSIDERATIONS:

• Stellar 16yr company history
• No AR issues: payment balance collected at the time of treatment
• Experienced clinical & administrative staff expected to stay on post-sale
• Strong customer retention as approx. 84% of bookings require a follow-up visit
• Well-known brand in the area as approx. 83% of business is reference based
• Low customer concentration as no client makes up more than 5% of sales
• Recession-proof as there was increased profitability despite COVID pandemic
• Distributed revenue streams through various service offerings
• Very low working capital required
• Very low advertising costs despite increased volume of new clients
• Very scalable business through proven virtual care model
• No debt

Financial

  • Asking Price: N/A
  • Cash Flow: $667,430
  • Gross Revenue: $1,482,436
  • EBITDA: $667,430
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2005

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:11
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates out of a 2,608 sqft commercial space conveniently located in California. The current lease ends in December 2022 where rent is $10,500 per month (3% annual increase).

Is Support & Training Included:

The Seller is proud of the business they've built. Their primary goal is to make sure the new Buyer is successful. Hence, they will stay on as long as the Buyer needs them.

Purpose For Selling:

Looking to eventually retire, but will stay on & assist Buyer grow the Company.

Additional Info

The business was started in 2005, making the business 17 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 absolutely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current decrease in revenues, or an array of various other reasons. This is why it is extremely vital that you not depend absolutely on a seller's word, however rather, utilize the vendor's solution together with your overall due diligence. This will repaint a much more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money so as to cover things like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area attract brand-new customers? Many times, businesses have repeat clients, which create the core of their day-to-day revenues. Particular aspects such as brand-new competition growing up around the location, road building and construction, and staff turnover can affect repeat consumers and adversely impact future revenues. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the chance to develop a returning client base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local mean family income impact future revenue prospects?