Listing ID: 67518
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Founded in 2016, this Maryland-based company is a reputable and growing multi-specialty medical practice serving patients in and around the Washington D.C. Metropolitan Area. The Company serves a diverse patient population and offers a wide array of services, including but not limited to a workers’ compensation care program purpose-built for injured federal employees and an osteoarthritis treatment program covered by most major insurance companies. The Company also maintains a recurring stream of revenue from its subscription-based testosterone replacement therapy program, and it enjoys supplemental revenue through an on-site pharmacy program.
The Company’s unique diversity in a highly niche medical practice hedges against economic changes in the communities served. The Company treated over 7,700 unique patients during 2019. The Company operates 3.5 days per week which provides management with a great work/life balance. Each of these factors also represent tremendous value and opportunity for a prospective acquirer.
The Company also maintains a strong balance sheet and extraordinary financial ratios. From 2017 to 2019, the Company experienced a compound annual sales growth rate of 15.8%, and earnings (EBIT) growth rate 24.2%. In addition to consistent year-over-year growth, the Company has also shattered the industry average EBIT margin of 7.6% — the Company’s EBIT accounted for 49.2% of total sales in 2019.
The Company’s growth and success are driven by its outstanding reputation in the markets it serves, evidenced by its 61% rate of repeat business. The Company’s diversified income sources serve as a shield against many industry risks, and the Company’s financial performance is further strengthened by a recurring revenue stream.
Diversified Revenue Streams. The Company’s strength lies in the unique diversity of revenue streams it offers. In particular services include, but are not limited to, federal workers’ compensation care, joint pain care, hormone replacement therapy, and on-site pharmacy services. This diversity hedges against the economic changes in the communities served.
Significant Growth Opportunities. The Company has several growth opportunities to significantly increase both revenue and profit. These opportunities include leveraging the Company’s proven reputation to pursue and penetrate new and existing markets through enhanced sales and marketing efforts. Additionally, extending office hours beyond the current three and half days per week and opening offices in other geographic markets, would position the Company to better serve distant patients and garner new ones. These opportunities are easily attainable subject to the appropriate investments in capital and human resources.
Strong Performance Despite COVID-19. The Company was limitedly impacted by COVID-19 and has proven that it can be resilient in the face of health pandemics, recession, and unexpected calamities.
Healthy Balance in Customers. The Company enjoys a near even balance of customers that are new versus repeat which is hallmark of a strong company that is in growth mode.
Highly Skilled, Loyal Staff. The Company’s processes have been developed by an exceptional management team of well-respected industry experts. Many of the key personnel will transition over, and the owner has agreed to remain on for a reasonable period to ensure the buyer is well-equipped for success.
- Asking Price: $3,799,999
- Cash Flow: $1,544,564
- Gross Revenue: $2,822,023
- EBITDA: $1,544,564
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The Company operates out of a 3,114 square foot space utilized for clinical visits and office purposes. The facility is leased from an unrelated party at the estimated fair market rental rate. The facility has ample parking and is located within walking distance of a metro station.
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.
The company was started in 2016, making the business 6 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell businesses. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competition, current reduction in profits, or a variety of various other factors. This is why it is extremely important that you not count completely on a seller's word, yet instead, use the seller's solution together with your total due diligence. This will repaint a much more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their daily earnings. Particular factors such as brand-new competition growing up around the area, roadway building and construction, and also personnel turnover can influence repeat consumers and adversely affect future earnings. One essential point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood typical house income impact future earnings potential?