Listing ID: 83086

Business Overview

This in-demand practice focuses on providing a multitude of behavioral health services in the greater Memphis and neighboring Mississippi and Arkansas tri-state areas. The practice is currently run by a single practitioner, but can easily be expanded to a multi-practitioner facility, given the acute local and tri-state shortage of psychiatric service providers and excess demand.

Services typically include: Medication Management, Psychotherapy, Family and Marriage Counseling, Trauma Therapy, Gender Identity, ADD Testing, Post Hospitalization Follow Up Care, MAT Programs (Suboxone).

This practice is in proximity to several inpatient psychiatric and medical hospital facilities that provide a constant flow of referrals. This sole practitioner practice generates $25,000-$30,000 in revenue per month. Revenue can easily expand once additional practitioners are added to the current facility.

The clinic is located on a business-owned, newly renovated standalone 2200 sq ft, 14 room, 2 story facility that provides ample room for revenue expansion across all healthcare practices.

This is a turn-key business opportunity with an option to purchase the real estate valued at $375,000. The Seller will assist the new owner through transition for 3-6 months and assist in recruiting a new practitioner to replace her, if requested to do so, given her very extensive network within the region.

Financial

  • Asking Price: $667,500
  • Cash Flow: $280,000
  • Gross Revenue: $350,000
  • EBITDA: N/A
  • FF&E: $15,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. However, the genuine reason vs the one they say to you might be 2 absolutely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or an array of other reasons. This is why it is really crucial that you not count totally on a vendor's word, however rather, utilize the seller's solution together with your total due diligence. This will repaint a much more sensible picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that profit margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be fulfilled or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new consumers? Often times, businesses have repeat customers, which develop the core of their day-to-day revenues. Particular variables such as new competitors growing up around the area, roadway building and construction, as well as employee turn over can affect repeat consumers and also negatively affect future incomes. One important thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the possibility to develop a returning customer base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the regional typical household income influence future income prospects?