Own a lucrative acupuncture practice near Sacramento

• With a population of about half a million people, Sacramento is the state capitol and consistently has one of the lowest unemployment rates in the U.S.
• The city is rich in arts, culture, and the opportunity for experiences as dynamic as its diverse population.
• Roseville is part of the greater Sacramento metropolitan area, with its own population of approximately 130,000.
• With a revitalized downtown and Historic District, Roseville is a regional shopping destination. It also boasts a huge medical community, with Kaiser and the Sutter Roseville Medical Center being two of the top three employers in town.
• With a relatively low cost of living, a mild Mediterranean climate, access to great schools and exceptional medical facilities, it’s easy to see why US News ranked the area as one of the best places to live in America.
• The clinic is located in Historic Roseville near a creek with a beautiful walking/bike path--a trendy area that is also full of boutiques, micro-breweries, restaurants, and music venues.
• The office has large signage out front and is tastefully decorated in Asian décor. It consists of a spacious waiting/reception area, 3 large treatment rooms, a kitchenette, a handicap-accessible bathroom, and abundant parking.
• The space is tastefully decorated, and the clinic maintains a close relationship with nearby health providers and the local community, from which it receives many referrals.

• East West Acupuncture Center is a non-specialty practice, seeing everything from subclinical and acute orthopedic conditions to chronic issues that have not responded to other medical interventions.
• Current specialties include allergies, headache, digestive problems, pain, and a particularly strong focus on women’s health and fertility.
• The patient population has spanned from infants to great grandparents and everyone in between. That said, the majority of the current patient load consists of women between the ages of 25 and 60.
• The current owner sees an average of 100 patients per month, and 85% pay in full at the time of service.
• The EHR system contains over 1,800 patient records.
• Most patients are from communities within 15 miles of the office.
• Given the owner’s long history in the area, almost all patients are referred by word-of-mouth, many from allied practitioners and clinics, and some come through the practice’s exceptional online reputation.

• The current owner has been largely uncomplicated in the methods she uses to treat patients, primarily employing Zang-Fu and channel theory diagnosis and treatment methodologies.
• She also utilizes Richard Tan’s Balance Method, Master Tong and motor points, along with cupping and electrical stimulation as needed.
• About 15% of patients are prescribed herbal medicines from the well-stocked in-house pharmacy.

The following income and expense summaries are derived from an average of income and adjusted* expenses from 2019-2021. Note that the current owner has office hours five days per week and takes up to five weeks off per year.

Income
Average gross yearly revenue (3 years): $128,466 ($10,705/month)

Expenses
Average adjusted expenses: $51,774 yearly ($4,314/month)

*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

Net Profit
Average $76,692 per year ($6,391/month)

• The price is based on a conservative professional valuation of $130,000 with an average yearly gross of $128,466 for the past three years.
• The owner’s motivation to sell in a timely fashion has allowed her to generously factor in a significant discount off the valuated price for potential attrition and start-up costs on change of ownership. She expects the right person will retain her patients and transition smoothly, making this a great opportunity for the buyer.
• 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.
• The seller may also be willing to hold a loan for the right buyer.
• Upon purchase, the new owner will receive all patient records and equipment in addition to any supplement inventory.
• The current owner will also transfer to the new owner all clinic-related intellectual property, including the clinic phone number, website, claimed Yelp page, Facebook and Instagram accounts, Unified Practice complete EHR and billing system, Constant Contact mass email system, and clinic-related financials.
• The landlord is willing to transfer the lease or start a new one, and the current owner will facilitate interaction with the landlord in order to secure favorable lease terms.
• The current owner’s goal is to surrender the practice by Spring 2023. She would be willing to stay on for a limited time to train a new owner in her techniques and to assist in the transition, if so desired by the new owner, at no additional cost.

While the current practice nets a healthy return, a motivated buyer could significantly increase their income upon acquisition through a number of simple changes.

• Work more hours. The current owner has office hours a maximum of seven hours per day, five days per week, leaving room to work more hours in the clinic, which would obviously increase revenue.
• Add additional practitioners. In addition to or in lieu of working more hours, the practice could easily support at least one more provider as an employee or lessee during the times when the office is unoccupied.
• Accept more insurance. The clinic is proud to be a low-maintenance, mostly-cash practice. An enterprising new owner could certainly attract more business by accepting and billing for more insurance-based patients.
• Do some marketing. The practice does no significant marketing outside of its web presence. There are file cabinets and a database full of patient information that could be used for marketing directly to current and former patients, but the clinic has been busy enough that these resources have not been leveraged. Doing any kind of additional marketing would create more opportunities for an increase in new patients and a return of pre-existing patients.
• Improve online presence. The current owner has been successful without putting too much effort into generating an ongoing online presence. Blogging, upgrading the website, leveraging social media, paid online marketing, and doing some email marketing all hold great potential to improve awareness of the clinic in order to generate more revenue.
• Sell more supplements. Only about 15% of patients currently take herbal medicines and supplements. Giving a greater percentage of patients the option of herbs and supplements offers another opportunity for increased revenue.