Listing ID: 74871
Well-known, established practice has been serving the Scottsdale and greater Phoenix metro community for over 15 years. This practice has been built by word of mouth and referrals. Services include the diagnosis and treatment of mental disorders such as depression, anxiety, bipolar disorder, and ADHD. The doctor has scaled back working hours and has limited patient hours serving approximately 225 active patients. Plenty of room to grow this practice and have the stability of the existing two, long-time employees (one FT schedule/receptionist and one PT biller/bookkeeping) who are available to stay on with the new owner.
The practice accepts most insurance reimbursements and there are no Medicare or Medicaid billings. All patients remit co-pay and any deductible at the time of service so there are no patient receivables or collection expenses. This practice has transitioned from brick and mortar to complete digital practice, with secure software. The doctor will assist with a transition on mutually agreed terms following the sale.
- Asking Price: $325,000
- Cash Flow: $205,000
- Gross Revenue: $270,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nevertheless, the genuine reason and the one they tell you might be 2 absolutely different things. For instance, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competition, recent decrease in incomes, or an array of various other reasons. This is why it is extremely essential that you not count completely on a seller's word, but instead, use the vendor's response together with your overall due diligence. This will paint a much more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering points such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that revenue margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new customers? Most times, companies have repeat customers, which create the core of their day-to-day profits. Particular factors such as new competitors growing up around the area, road building, and also employee turn over can affect repeat customers and negatively affect future earnings. One crucial point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the chance to construct a returning customer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the regional mean household income influence future income potential?