Business Overview

Above average financial performing medical billing company. Thirty-five employees. Billing services provided to over 300 doctors in Massachusetts and Rhode Island. Annual revenues split equally between these two states. This company receives a percentage of collected revenues ranging from four to seven percent.

Single tenant in a 5,000 SF Class B office facility in Providence close to major college. Plenty of parking.

Margins driven by well trained staff utilizing a process model designed to focus on highest Relative Value Units to maximize and expedite cash flow for clients and the company.

Earnings listed in this ad are adjusted earnings with verifiable addbacks..

Real estate purchase option available. Real estate owned by business owner.

Financial

  • Asking Price: $7,200,000
  • Cash Flow: $1,310,000
  • Gross Revenue: $3,890,776
  • EBITDA: N/A
  • FF&E: $517,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1992

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:40
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two story building with large full length glass windows facing high traffic street. Faces a large municipal government building. Class B office space.

Is Support & Training Included:

Owners are committed to a smooth management transition. Two weeks equivalent of management transition and then willing to consult on a market rate consulting agreement subject to definitive legal agreement.

Purpose For Selling:

Retirement and other business interests.

Pros and Cons:

Small and lower margin competitors in this market.

Opportunities and Growth:

A. Identify, evaluate, and hire new billing coding staff. B. Leverage the success at established larger physician practices. C. Evaluate Connecticut and other states. Repeat the process. D. Create and launch a formal marketing campaign to attract new clients.

Additional Info

The business was established in 1992, making the business 30 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. Nonetheless, the true reason vs the one they say to you may be 2 absolutely different things. As an example, they might say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be justifications to try to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or an array of various other reasons. This is why it is extremely crucial that you not count absolutely on a seller's word, however instead, make use of the vendor's answer together with your general due diligence. This will repaint an extra sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that profit margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area attract new customers? Often times, companies have repeat consumers, which create the core of their daily earnings. Particular elements such as new competitors sprouting up around the area, roadway building and construction, as well as employee turn over can influence repeat consumers and adversely affect future profits. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business regularly, the better the possibility to develop a returning client base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local mean family income impact future revenue potential?