- Joined
- Sep 3, 2003
- Messages
- 21
- Reaction score
- 0
General practice that only sees kids/teenagers for regular treatment, nitrous and oral sedation. Accepts PPO, Denti-Cal, Healthy Families, Cash, Care Credit. No HMO.
Gross:
2011 - $1.5mill
2012 - $1.47mill
2013 - $1.6mill; Estimated net income for 2013 was ~$620k.
Asking price: $1.2mill (~$500k in asset + ~$700 in Goodwill)
Business has been established over 15 years and office was recently completely remodeled ($300k spent). Located in a very popular strip mall. Eight chairs (~$200k in equipment), open 6 days a week,
4 doctors/12-15 staff, 25000 (yes, 25000) active patients seen in last 2 years; 70% are Denti-Cal, 25% PPO, 5% Cash. Transferable ten year lease, with options to renew 3x. Rent is ~$10k/month. Competition is minimal; no one wants to take Denti-Cal or do sedation due to low reimbursement rate so this office gets all the patients.
So....would you buy this office? Why or why not? What kind of things should I be looking out for? What is your outlook on Denti-Cal? I am aware of the recent 10% rate cut. Questions are more than welcomed.
Thanks in advance!
Gross:
2011 - $1.5mill
2012 - $1.47mill
2013 - $1.6mill; Estimated net income for 2013 was ~$620k.
Asking price: $1.2mill (~$500k in asset + ~$700 in Goodwill)
Business has been established over 15 years and office was recently completely remodeled ($300k spent). Located in a very popular strip mall. Eight chairs (~$200k in equipment), open 6 days a week,
4 doctors/12-15 staff, 25000 (yes, 25000) active patients seen in last 2 years; 70% are Denti-Cal, 25% PPO, 5% Cash. Transferable ten year lease, with options to renew 3x. Rent is ~$10k/month. Competition is minimal; no one wants to take Denti-Cal or do sedation due to low reimbursement rate so this office gets all the patients.
So....would you buy this office? Why or why not? What kind of things should I be looking out for? What is your outlook on Denti-Cal? I am aware of the recent 10% rate cut. Questions are more than welcomed.
Thanks in advance!