Listing ID: 83073

Business Overview

Their services are very in demand. This rapidly expanding behavioral practice provides a multitude of behavioral services in the state of PA. They provide mental health wellness services through medication management and a variety of therapies. They diagnose and treat depression, anxiety, ADHD, Autism, Dementia, and more.

The practice currently employs a staff of 10 and is expected to add 2 additional practitioners within the next several months.

Financial

  • Asking Price: $3,500,000
  • Cash Flow: $1,260,000
  • Gross Revenue: $2,643,689
  • 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 decide to sell operating businesses. Nevertheless, the genuine factor and the one they say to you might be 2 completely different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of other factors. This is why it is extremely vital that you not count entirely on a seller's word, but instead, use the seller's response together with your general due diligence. This will paint a much more realistic picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money in order to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that profit margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new clients? Most times, businesses have repeat clients, which develop the core of their day-to-day revenues. Specific aspects such as brand-new competition sprouting up around the location, roadway building and construction, as well as staff turnover can influence repeat clients and also adversely affect future incomes. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the better the chance to develop a returning customer base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the regional average family income influence future earnings prospects?