Listing ID: 83062

Business Overview

This Cardiology Practice is experiencing rapid growth and profitability expansion. The Owner Practitioner estimates an additional $2MM-$3MM in additional unmet demand. This practice has the opportunity to expand into other locations as well. They have a great reputation and multiple hospital affiliations.

They offer a variety of services including cardiology testing, diagnosis, preventative services, Cardiac Catheterization, Stents, Coronary Angioplasty, and more.

The Cardiologist / Practice Owner would like to remain an integral part of the business and maintain his current patient load indefinitely. The Business Owned Real Estate is also available for sale, for an additional $1.4Million.

Financial

  • Asking Price: $8,895,000
  • Cash Flow: $2,700,000
  • Gross Revenue: $5,300,000
  • 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 kinds of reasons individuals choose to sell businesses. However, the true factor and the one they tell you may be 2 totally different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or a range of various other reasons. This is why it is very crucial that you not count entirely on a vendor's word, however rather, make use of the vendor's solution in conjunction with your general due diligence. This will paint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that profit margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new consumers? Often times, businesses have repeat customers, which form the core of their everyday revenues. Particular variables such as brand-new competition growing up around the location, roadway building, and staff turnover can impact repeat clients and negatively impact future earnings. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business regularly, the greater the opportunity to construct a returning customer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood mean household income effect future income prospects?