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Hi everyone
I know there a lot of people on here who have purchased practices and have experience with practice acquisitions. I am considering purchasing a practice and the real estate. The practice is ffs grossing 900k on 3 year avg and the real estate is worth around 500k ( waiting on the appraisal still ). The overhead is less than 50%. The office runs a zero balance philosophy and thus has no accounts receivable. The owner/ seller will stay on as an employee for the transition working part time for as long as I need.
The practice is a sedation based practice and about 30% of patients want enteral or uv sedation.
My concerns are financial. Does it make sense to borrow let's say a million dollars for the practice or am I better off buying a smaller insurance based practice and building my income this way. Also since it's a sedation based practice and has a specific nitch does that make the practice valuation less than the usual 65%
What are some thoughts out there about this?
What concerns should I have or questions I should be asking?
if you don't want to post but have advice and guidance please pm me. Thank you.
I know there a lot of people on here who have purchased practices and have experience with practice acquisitions. I am considering purchasing a practice and the real estate. The practice is ffs grossing 900k on 3 year avg and the real estate is worth around 500k ( waiting on the appraisal still ). The overhead is less than 50%. The office runs a zero balance philosophy and thus has no accounts receivable. The owner/ seller will stay on as an employee for the transition working part time for as long as I need.
The practice is a sedation based practice and about 30% of patients want enteral or uv sedation.
My concerns are financial. Does it make sense to borrow let's say a million dollars for the practice or am I better off buying a smaller insurance based practice and building my income this way. Also since it's a sedation based practice and has a specific nitch does that make the practice valuation less than the usual 65%
What are some thoughts out there about this?
What concerns should I have or questions I should be asking?
if you don't want to post but have advice and guidance please pm me. Thank you.