So I've come across a couple of good opportunities...at least I think they are good. I'll try to shed some light on both on here:
The first is a well established practice. Its a big but not popular city. It has a pretty substantial population. There's maybe 6 or so podiatrists .
Current owner is an older physician. Looking for an out in the next year. Solo practice, modern, but shows signs of the times (eg lack of web presence, EMR, etc). But its established so it's pretty busy.
For a solo older doc, I think the collections are decent, however, the asking price is about 150k ABOVE what the average gross collections are. Doesn't take a genius to tell me this is significantly overpriced.
How would one handle this situation? I don't want to obvious low-ball anything. I've heard at a conference that podiatry practices these days go for 25-30% of the gross collections. Not sure how true it is, but looking for some advice from the pros on here. If I were to make an offer, I would want it to be sound mathematically and I would want to be able to back up the number with evidence. I have received some documents with numbers dating back several years. Seems kinda short tho and Im not sure what else I should be analyzing.
Part 2 of this story is the possibility of just going out and starting from scratch, probably somewhere in the nearby geographic area. I want to keep it as lean as possible to start with my only MAJOR expenses being rent and x-ray. A quick tabulation of inventory shows me that this MAY be possible for roughly 130k (this includes other services like malpractice, call center usage, EMR, chairs and other supplies and isn't just limited to X-ray and rent). Trying to get a rough idea from the self starters on here on what their takes are.
The first is a well established practice. Its a big but not popular city. It has a pretty substantial population. There's maybe 6 or so podiatrists .
Current owner is an older physician. Looking for an out in the next year. Solo practice, modern, but shows signs of the times (eg lack of web presence, EMR, etc). But its established so it's pretty busy.
For a solo older doc, I think the collections are decent, however, the asking price is about 150k ABOVE what the average gross collections are. Doesn't take a genius to tell me this is significantly overpriced.
How would one handle this situation? I don't want to obvious low-ball anything. I've heard at a conference that podiatry practices these days go for 25-30% of the gross collections. Not sure how true it is, but looking for some advice from the pros on here. If I were to make an offer, I would want it to be sound mathematically and I would want to be able to back up the number with evidence. I have received some documents with numbers dating back several years. Seems kinda short tho and Im not sure what else I should be analyzing.
Part 2 of this story is the possibility of just going out and starting from scratch, probably somewhere in the nearby geographic area. I want to keep it as lean as possible to start with my only MAJOR expenses being rent and x-ray. A quick tabulation of inventory shows me that this MAY be possible for roughly 130k (this includes other services like malpractice, call center usage, EMR, chairs and other supplies and isn't just limited to X-ray and rent). Trying to get a rough idea from the self starters on here on what their takes are.