Great Reputation – Plenty of Growth Opportunity
This is a well-established and profitable Medical Practice in a desirable area of Central-North New Jersey. The physician has run this Practice for the past 27 years and runs it as a lifestyle business, with no advertising and strictly getting patients by word of mouth.
The Practice maintains a comprehensive patient base of 3,500 patients, of whom 2,500 are active. This diverse array of patients encompasses a broad spectrum of age groups. It is affiliated with various insurance providers, thus contributing substantively to the dynamic and firmly established healthcare community.
There is limited competition to this practice in the immediate service area. There are only two other family practice clinics in the area. The Practice employs two front-desk professionals who take care of all administrative duties.
Earlier this year, the Practice moved to a modern Physician Building. The Practice has a large percentage of an older demographic due to the Physician’s established reputation for decades, despite the lack of marketing efforts and relying solely on word-of-mouth.
The owner has treated the Practice as a lifestyle business, but the new owner has a lot of opportunities to grow the business, including:
- Extending office days and hours to enhance accessibility
- Introducing Saturday hours for added convenience
- Facilitating hospital admissions under physician care
- Broadening telemedicine availability for flexible consultations
- Enhancing promotional efforts through social media and other channels
- Establishing a robust online presence with a dedicated website
- Expanding medical services to encompass nursing homes and assisted living facilities
- Augmenting diagnostic capabilities, including ECHO, carotid Doppler, and vascular testing
- Introducing advanced nerve conduction studies for comprehensive evaluations
- Well-established, Profitable practice
- Great reputation
- In an excellent, desirable area, in a modern Medical Building
- Ample Growth opportunities ( via Advertising, Longer Hours, More Services, etc.)
- Accepts Most Insurances
- 3,500 patients (2,500 active patients)
The table below shows a financial summary of the last four years and the financial projections for 2023. More details are shown in the tables below.
|(All figures are in $)||FY 2022||FY 2021||FY 2020||FY 2019|
|% of Total Revenue||57.0%||60.7%||54.5%||57.6%|
The asking price is $450K, at a very reasonable multiple of 2.8x of SDE. Considering that the owner works limited hours, does not advertise (does not even have a website), and has relatively little competition in the area, this is an excellent opportunity at a very reasonable price.