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Endodontics Practice with 4 Operatories

Space to grow 25% or more at current location!

CASH FLOW
$229,000

Specifications

  • Price
    $910,000

  • Revenue
    $1,432,896

  • Cash Flow
    $229,000

  • Equipment
    $136,000

  • Multiplier
    3.95

  • Location
    Philadelphia, Pennsylvania

 

This endodontics practice has 4 operatories and has space to grow 25% or more at the current location!  The practice has a staff of 8 with FT and PT associates who do both pre-procedure and procedural root canal work. Patients who come in for an appointment have an evaluation/consultation where the associate determines the procedure to be done—this practice does both surgical and non-surgical procedures. Many of these procedures utilize newly developed technologies, while a unique procedure that was co-developed by an associate sees patients coming in from Europe to see them! The patient demographic range is significant, and the practice serves all ages. In striving for the best in quality patient care, this practice has set itself up as the biggest in the area.

 

Under its current ownership since 2015, this practice has a 2,945 sq ft. office space at $7,700/month. Assets included in the space are 4 operatories along with microscopes and CPCT 3-D imaging machines. The current owner has a desire to step away from the business aspects of the practice in order to exclusively focus on their passion of patient care. They welcome all prospective buyers regardless of background and would stay on as long as needed to ensure that a smooth transition takes place.

 

Priced at $910,000, this practice has a great deal of growth opportunities, including an expansion of operations out into the Philadelphia suburbs as well as an increase of online presence and general marketing! Just a 10% down payment of $91,000 returns $728,000 in the first year after debt payments—a 122.7% return on investment!

Business Highlights

 

Years in Business: 50+ years (under current owner since 2015)

Location: Philadelphia, Pennsylvania

Service Area: Philadelphia and surrounding 20-mile radius

Services: Pre-procedure patient root canal evaluations and consultations; surgical and non-surgical root canal procedures

Clients: Numerous: serving all ages in the Philadelphia area

Lease: 2,945 sq ft: $7,700 per/month  

Reason for Selling: Desire to step away from business aspects of practice and focus exclusively on patient care

Personnel: 8: 2 FT DDS | 1 PT DDS | 3 FT Assistants | 2 FT Front Office

Seller Training Period: 2-3 years

Growth Opportunities: Expanding operations out into the Philadelphia suburbs

Current Owners’ Responsibilities: Patient evaluations, consultations, and procedural work

 

Financial Highlights

  • List Price: $910,000
  •  

     

    •          2020-2021 Average Cash Flow: $212,632


Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Oct
Tax ReturnTax ReturnNotes
202120202019
GROSS SALES$1,194,080$1,390,977$1,397,018
Annualized$1,432,896
Net Income Shown on Financial Statement$87,994$135,875$78,326
ADDBACKS
Compensation to Owner$190,000$228,000$219,000
11% Tax on total W2 Salaries$13,777$25,080$24,090
Depreciation$0$2,446$74,182
Interest$14,078$14,434$8,722
Amortization$0$41,333$41,333
Meals & Entertainment$1,118$1,104$863Personal expense
Simple IRA for Owner$10,000$12,000$12,000Paid for owner
Owner/Endo Salary$-208,333$-250,000$-250,000To replace/retain owner
N/P Wells Fargo Loan$61,443$0$0Personal expense
Disability for Owner$986$954$955Personal expense
Travel$3,755$4,255$10,309Personal expense
TOTAL ADDBACKS$86,824$79,606$141,454
Seller's Cash Flow = Total Addbacks + Net Income$174,818$215,481$219,780
Annualized$209,782
Profit Margin14.64 %15.49 %15.73 %

Cash Flow Analysis

 

Valuation

Funding Example

Purchase Price:

$910,000

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Years
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Bank Loan Needed: $

Years
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2021 Annualized Cashflow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2021 Annualized Cashflow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.