Alternative Medicine Center
Port Chester, New York
Unique opportunity to own an all-cash, 30-year-old acupuncture practice in downtown Port Chester, New York
Run a busy, low-maintenance practice and enjoy idyllic small-town life... just a 45-minute train ride to Grand Central Station in Manhattan!
Ultra-established 30-year practice for sale in Westchester county: enjoy idyllic small-town life just a 45-minute train ride to Grand Central Station in Midtown Manhattan!
The Alternative Medicine Center (AMC), currently the acupuncture practice of Paul Rathe, L.Ac., is an all-cash, highly profitable practice just steps to the train station and in the middle of downtown Port Chester.
Situated in one of America’s wealthiest counties, Port Chester is an exception to the neighboring communities; residents enjoy a very reasonable cost of living in the midst of great affluence. There’s a bustling, historic downtown, and easy commuter access to NYC (it is not unusual for clients to commute from the city). AMC holds a decades-old reputation in the area for clinical efficacy, and the opportunity to take over this well-known practice is available now.
Mr. Rathe currently earns close to $100,000, and profitability is exceptionally high (70%) for a healthcare practice. Costs are minimal, thanks to an all-cash clientele and an extraordinarily low rent for the wonderful penthouse space on Main Street.
And having been in business for nearly 30 years, the clinic’s reputation attracts a steady flow of new clients and referrals, all by word of mouth. For years, this solid reputation has precluded the need for marketing efforts and related costs.
Whether you are just out of school or an established clinician, this is an opportunity to hit the ground running. Step into a successful practice steeped in small-town charm with easy access to big city culture. Call or email today; we’d be happy to start a conversation.
Learn much more below.
- The Setting
- Patient Demographics
- Modalities Utilized
- Opportunities for Growth
- The community of Port Chester is located just west of Greenwich, Connecticut, and is an easy 45-minute train ride to or from New York City.
- The NY metropolitan area contains more than twenty million people, all within reach of our office, and Port Chester lies in Westchester County, one of the most affluent counties in the United States.
- The town rests at a bustling crossroads with a thriving downtown waterfront featuring some of the best restaurants and entertainment venues in the tri-state area.
- It boasts a small-town feel, with about 30,000 residents, well-maintained parks, and a public marina.
- The clinic’s location in Port Chester is perfect. AMC is in the center of downtown in the penthouse of a historic building, and it is an easy 2-minute walk to the MetroNorth train station.
- There is also quick access to the local main highways.
- The space has been a medical office for 45 years, and AMC has been based here for 28 years and counting.
- Since the lease is so longstanding, the current rent is exceptionally low, well below market rates.
- Inside, the clinic consists of three treatment rooms; a large reception area and waiting room; and plenty of natural light and windows all around.
- It has a very spacious outdoor deck, a large restroom, plenty of storage space, and easy access from the street.
- The space is modern and tastefully decorated, and the clinic maintains a close relationship with nearby health providers and the local community, from which it receives many referrals.
- AMC is a non-specialty practice, welcoming patients with a wide range of conditions, from pain and allergies to adrenal fatigue and Type 2 Diabetes.
- Most of our patients are professionals in their late thirties to mid-sixties.
- We currently have about 48-60 patient visits per month, with requests from new patients every week, and over 1,000 active patient files.
- Our patients all pay out of pocket at the time of service, and nearly 50% of them use herbal medicine.
- Most of the patients live in communities within an hour of our office. Given AMC’s long history in the area, almost all patients are referred by word-of-mouth, while some come through our online presence.
- The current owner is happy to provide years of past calendars to prove consistent patient volume.
- While trained in standard acupuncture and traditional Chinese medical techniques, the current owner has also studied and specializes in the Japanese style of Kiiko Matsumoto (KM Style), as well as NAET allergy elimination techniques.
- He also prescribes herbal medicine to approximately half of current patients.
- Mr. Rathe would be happy to train the new owner in any of his techniques and modalities. Note that most clients come to the clinic because of its reputation for clinical efficacy rather than to seek any particular style of acupuncture.
The following income and expense summaries are derived from an average of income and adjusted expenses* from 2015-2018.
- Average gross yearly revenue (4 years): $98,721 (~$8,227/mo)
- Average adjusted* expenses: $25,848 yearly (~$2,154/mo)
*Adjusted expenses are the net expenses that a new owner would have to take on in order to run the business at the same level of revenue as the current owner. Thus, elective variable expenses such as continuing education, transportation, etc. are removed from gross expenses to calculate adjusted expenses. Take-home pay for the owner is included in adjusted expenses at the same level the current owner is paid.
- Average ~$72,873/year (~$6,073/month) – Over 70% of revenue is profit after expenses.
- $79,747 OBO. Our price is based on a professional valuation of $100,322, with an average yearly gross of about $98,700 for the past several years. We expect the right person will retain our patients and transition smoothly, making this a great opportunity for the buyer.
- The seller would like to retain a 10% interest in the practice (and is willing to discount the sale price by the same amount) in exchange for 10% of the practice’s ongoing gross income.
- The purchase will be structured as an asset purchase agreement and may be drawn up between buyer and seller (preferred) or by attorneys, at the discretion and by agreement of both parties.
- Approval of the buyer is subject to a credit check, and loans from medical practice brokers, banks, or the Small Business Administration (SBA) may be available to finance the transaction depending on the buyer’s creditworthiness. (Note that interest rates for lenders are particularly favorable at this time.)
- Upon purchase, the new owner will receive patient records, furniture, equipment, and any herbal inventory. The current owner will also transfer to the new owner all clinic-related intellectual property, including the clinic phone number, claimed Yelp page, medical records, and clinic-related financials.
- Mr. Rathe will also facilitate interaction with the landlord in order to secure favorable lease terms.
- The current owner’s goal is to surrender the practice by end of 2021. He would be willing to stay on for a limited time to introduce clients to the new owner, assist with the transition, and train in any of his techniques, if so desired by the new owner.
While the current practice nets a healthy return, a motivated buyer could significantly increase their income upon acquisition through a number of simple changes.
- Accept insurance. AMC has always been a cash practice, keeping overhead low. However, an enterprising new owner could certainly attract even more new clients by accepting and billing insurance.
- Use all three rooms. The current owner uses only one or two treatment rooms at a time. The additional treatment room(s) could be utilized by an enterprising new owner to increase the number of patient visits without significantly increasing the number of hours worked.
- Sublet rooms. The facility is spacious, and the new owner could sublet space when it is not in use. This would reduce an already very low rent expense.
- Bring on other practitioners. In addition to or in lieu of working more hours, the practice could support more providers, either as contractors, employees or subletters.
- Expand marketing efforts. The practice is well known because of its excellent reputation and long-time presence in the area. As a result, marketing has been kept at a minimum. A new owner could increase new and return appointments by cultivating an online presence, email marketing to current patients, and further networking with the extensive community of MDs and other practitioners in the area.
Take advantage of this exceptional opportunity to run your own high-profit, low maintenance, all-cash practice in a beautiful area. Fill out the contact form below, call (914) 939-0003, or email [email protected] today.
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