Listing ID: 74875
Busy 15-year-old Arizona Internal Medicine Practice for sale in west Phoenix. High growth area with rapid expansion. The practice currently has 1,700 active patients and sees an average of 23 patients per day and is located within close proximity to major area hospitals.
The internal medicine practice occupies 2,170 SF of clinical space with a 4,543 SF single-level office condo. The building is available for sale at $1,200,000. Located in a sought-after medical complex area.
Revenue of $699,214 in 2020 with a solid net. Payer mix consists of 55% Commercial, 20% Medicare and 25% AHCCCS. Current EMR practice management is provided through third party services with eClinicalworks. Staff will remain post-sale. The retiring owner will provide transition assistance to the new owner.
Owner/Physician and well-trained, multi-lingual, and dedicated staff to remain on staff and assist in a smooth transition. Most major insurances accepted include Medicare, AHCCCS, TriCare, Aetna, BCBS, Cigna, United Healthcare, and many other commercial insurance plans.
- Asking Price: $575,000
- Cash Flow: $240,292
- Gross Revenue: $699,214
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,543
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The practice has four fully equipped exam rooms, procedure room, lab area, waiting room for 10 people, reception area, one Physician office, PA/NP office, Office Manager office, two restrooms, staff lounge, and one storage room.
Seller is preparing for retirement
The business was founded in 2006, making the business 16 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. However, the true factor and the one they tell you might be 2 absolutely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or an array of various other reasons. This is why it is really vital that you not rely entirely on a vendor's word, however rather, utilize the vendor's solution combined with your total due diligence. This will repaint a much more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that revenue margins are too small. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new customers? Often times, businesses have repeat consumers, which develop the core of their daily earnings. Particular elements such as brand-new competitors growing up around the area, road construction, and employee turnover can affect repeat customers as well as negatively impact future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning client base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the local average household earnings influence future income prospects?