Business Overview

This well known Physical Therapy practice has served NW Arkansas for over 15 years. The owner is stepping away for a new career and is leaving this well known clinic for a new buyer. The facility is generously outfitted and provides many types of therapy, some exclusive.

Financial

  • Asking Price: $129,000
  • Cash Flow: $87,000
  • Gross Revenue: $271,849
  • EBITDA: N/A
  • FF&E: $138,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

new career

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the real reason and the one they say to you might be 2 entirely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or an array of various other factors. This is why it is really crucial that you not rely entirely on a vendor's word, but rather, use the vendor's answer along with your general due diligence. This will paint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that revenue margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new clients? Many times, operating businesses have repeat consumers, which form the core of their everyday earnings. Particular aspects such as new competition sprouting up around the location, roadway building and construction, and personnel turn over can influence repeat customers as well as adversely affect future earnings. One important thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local mean family income effect future revenue prospects?