Summary: 
Family Practice with Medical Spa
Business Type: 
service
Business Type: 
medical
Location: 
Iowa
Price: 
$126,000
Sales Revenue: 
$176,942
Cash Flow: 
$43,547
Realestate Included: 
No
Inventory: 
$8,742
Employees: 
1
Internal Listing:: 
HEA011
Reason for Sale: 
Family Obligations

Description
This family practice with medical spa is located in Johnson County, Iowa near the Iowa City metro area. This clinic not only stresses disease prevention but promotes healthy living. Services are provided in management of hypertension, diabetes, cholesterol, weight, depression and anxiety and more. School, sports and employment physicals are also offered, as is gynecological care, hormone replacement and laser hair esthetic care. With over 750 clients on the books, this business is set up for continued success. Lease is $3,400/month within 2,500 square feet, however a healthcare-related tenant shares lease expenses in this newer facility with $24,000 invested in build-out. Owner is motivated to sell and will provided 120 days of training and support to the incoming owner as well as 15% seller financing.

An incoming buyer placing a 20% down payment on the business would receive a net operating income (NOI) of $25,312 after business expenses and loan payments in the first year alone.

Financial Overview
List Price: $126,000
Gross Sales
3 Year Average: $176,942
Owner Profit/Cash Flow
3 Year Average: $43,547
Profit Margin: 23.37%
Multiple: 2.90 *Multiples range from 1-5, with the average being 3
Valuation: 3-yr Avg Cash Flow x Mult. = Price
$43,547 x 2.90 = $126,286

Assets Included in Purchase: $81,487
Total Assets: $72,745 including two complete exam rooms, reception area, washer/dryer, all office equipment and all necessary equipment
Inventory: $8,742
Build-Out: $24,000

Business Information
Year Established: 2006
Location and Service Area: Johnson County, Iowa
Number of Patients: 750+
Lease: $3,400/mo in 2,500 square feet
Reason for Selling: Family Obligations
Employees: 1 FT
Hours: Mon-Fri 9am-5pm
Seller Training Period: 120 Days
Growth Opportunities: Expand to Evening Hours & Weekends
Payor Mix: Blue Cross Blue Shield (75%), Managed Care (13%), Cash Pay (7%) and Other (5%)
Services Offered: Management of hypertension, diabetes, cholesterol, weight, depression & anxiety (with local psychologists and counselors); physicals for school, sports, and employment; annual gynecological exams, treatment of acute problems, IUD placement; hormone replacement; total esthetic care

Funding Example
Purchase Price: $126,000
20% Buyer Down Payment: $25,200
15% Seller Financing: $18,900
65% Bank Loan: $81,900

An incoming buyer with the above funding example would receive a net operating income (NOI) of $25,312 after business expenses and loan payments in the first year alone.

Next Steps
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.

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