Listing ID: 67649
A well-established pediatric practice has been a main stay in the community for 75 years, serving multiple generations of families with healthcare for their children and young adults. It is the only medical practice recognized by the county health department for “excellence” in 2016.
Along with the two doctors and a nurse Practitioner, there are also four staff that want to remain with the practice.
The practice has been at the current location for 44 years. The standalone 5450 S F building was custom built to suit this type of medical practice with 15 exam rooms, three offices, a nurse’s station and waiting area. 80 % of the building is used by the pediatric practice, the additional space is built out as a separate medical office rented to a clinical research group. Both doctors work closely with this research group and a new doctor coming in could benefit from the additional revenue that this relationship provides.
This medical practice has had steady growth over the years and has excellent demographics. Located close to the DC beltway with a thriving community of schools – 10 elementary, 3 middle, 4 high schools, shopping, and major employers. With an established patient base of approximately 6000 patients, the doctors see around 600 patients a week.
Offering a comprehensive array of pediatric medical services for children of all ages the business would be an excellent opportunity for a pediatrician who wants to be their own boss. The purchase of this medical practice is an ideal opportunity for a licensed doctor or partnership to step into a turnkey operation with an established book of business and well-maintained building. With current favorable interest rates and SBA incentives, this is the right time to own an established medical practice! Additional information is available with a signed NDA.
- Asking Price: $1,400,000
- Cash Flow: $468,000
- Gross Revenue: $2,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1947
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:5,450
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The practice has been at the current location for 44 years. The standalone 5450 S F building was custom built to suit this type of medical practice with 15 exam rooms, three offices, a nurse’s station and waiting area. 80 % of the building is used by the pediatric practice, the additional space is built out as a separate medical office
The 2 doctor / owners will transition a new doctor to assure a smooth transition.
No other practice in the area that has been providing healthcare services for 70+ years. Loyal multi generational patients.
Vey busy practice that has room for growth.
The venture was founded in 1947, making the business 75 years old.
The company has 6 employees and resides in a building with estimated square footage of 5,450 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the real reason and the one they say to you might be 2 totally different things. For instance, they might say "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a variety of various other factors. This is why it is really crucial that you not depend entirely on a seller's word, yet rather, utilize the seller's response combined with your total due diligence. This will repaint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering items such as stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that earnings margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new clients? Often times, operating businesses have repeat customers, which create the core of their day-to-day profits. Certain aspects such as brand-new competitors growing up around the area, roadway building, and personnel turnover can influence repeat customers and also negatively influence future earnings. One important thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the chance to build a returning consumer base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the regional average household earnings impact future earnings potential?