Own a highly established, lucrative, low overhead naturopathic practice in beautiful West Seattle

• Situated on gorgeous Puget Sound, Seattle is surrounded by water, mountains and evergreen forests, and contains thousands of acres of parkland.
• Have your cake and eat it too: bountiful nature to enjoy AND a thriving urban economy.
• Ranked the #1 fastest growing city by the U.S. Census Bureau, Seattle has one of the most vibrant economies in the country and has long been recognized as the business, financial, and cultural center of the Pacific Northwest.
• The region possesses a critical mass of well-capitalized and innovative companies that are global leaders in industries such as aerospace, biotechnology, global health, research, retail, software, technology, and wireless services.
• Over 100,000 of Seattle’s total population resides in West Seattle. The area is home to some of the city’s most beautiful parks and has spectacular views and a rich cultural heritage that includes live theater, excellent dining options and a thriving arts community.
• West Seattleites are known for being politically astute, environmentally conscious, and unabashedly proud of their community, recognized for its green practices, green buildings, and green businesses.
• The 2,500 square-foot clinic is located in the historic Hamm Building in the heart of the main commercial district of West Seattle, right at a Metro C-Line stop, connecting patients from downtown Seattle.
• The spacious suite consists of large reception and waiting areas; four clinical offices; a bathroom; a small kitchen, and three smaller rooms. A laundry facility, shared with other tenants, is just outside the office’s back door.
• Currently, I use one of the mid-sized clinical offices, two are used by mental health counselors, and one by an acupuncturist. Together we form a harmonious, mutually supportive community; it has been lovely for all of us to practice under the same roof.
• The waiting room is spacious and could be used for group-delivered services, educational programs, and potentially a small yoga or meditation class.
• The three small rooms are presently used for: 1) infrared sauna; 2) staff shared office lounge with bookcase, medical refrigerator, ND lab kits and general storage; and 3) spare office used by bookkeeper and for nebulizing and overflow nutrient injections. The latter was originally planned to be an IV and “Shot Bar” injection room.

• Junction Naturopathic Medicine is a general practice. I see patients with acute conditions, optimizing function, promoting wellness and focusing on chronic issues via individualized treatment approaches.
• Patients have spanned from very young to very senior. That said, the majority of current patients are professionals between the ages of 25 and 60 seeking resolution of chronic conditions.
• At this point, income is roughly 65% insurance/35% time of service/cash.
• The time-of-service rate is $350 FOC for 90 minutes, $225 ROC for 60 minutes.
• Since COVID, a significant percentage of the practice has moved online to a telemedicine platform. After a drop in client visits with the 2020 shut down, volume began to come back in late summer, and face-to-face visits resumed in early September.
• Most patients are from communities within 10 miles of the office. Given my long history in the area, almost all patients are referred by word-of-mouth, while some come through insurance referrals and JNM’s online presence.

The following income and expense summaries are derived from an average of income and adjusted* expenses from YE2019 (the last pre-COVID year). Recall that the current owner sees patients no more than 12 hours per week and takes 3.5 months off per year!

Income

Gross yearly revenue (2019): $94,624 ($7,885/mo)

Expenses

Adjusted expenses: $38,624 yearly ($3,219/mo)

Net Profit:

~$56,000 per year (~$4,666/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, licenses and fees, 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.

• The average net after expenses is just under $60,000, and the value of the tangible assets alone (furniture and fixtures) is about $30,000.
• Adding in intellectual property (website, online reputation, business name, etc.), the spot value of this practice hovers around $100,000.
• I’m a 1989 Bastyr graduate and have had a full and rewarding career in health care. As I mentioned, my husband has just retired and I would like to push up my timeline to sell. As a result, I have opted to offer the practice at a friendly price.
• 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.
• I would also consider holding a loan for the right buyer.
• Upon purchase, the new owner will receive all patient records and equipment in addition to any supplement inventory. I will also transfer to the new owner all clinic-related intellectual property, including the clinic phone number, website, billing system, the free CHARM patient database and clinic-related financials.
• The landlord is willing to transfer the lease and I will facilitate interaction with the landlord in order to secure favorable lease terms.
• My goal is to sell the practice as soon as possible. I would be willing to stay on for a period of time to train a new owner in my techniques, clinic operations, opportunities for growth and to assist in the transition, if so desired by the new owner, at no additional cost.

An important part of the practice’s value in its present utilization is effectively “rent free” for at least the next 7 years, and possibly longer. The present lease, which extends through November 2022, is at $2,000/month, with an option for a 5-year extension at $2,200/month, through October 31, 2027. It’s “rent free” in that three current subtenants pay a total of $2,175/month. Notably, this amount of monthly revenue is with space under-utilized in terms of days/week in their rental agreements. I’d also like to emphasize that with the current arrangement, access to my treatment spaces is never limited, and I am the only one to use my treatment spaces. (In other words, I have access to my treatment spaces at all times, whether or not the subtenants are present taking appointments.)

While the current practice nets a healthy return, a motivated buyer could significantly increase their income upon acquisition through a number of simple changes. Some of these are outlined below. I can lay out specific financials, growth strategies and associated scenarios for serious potential purchasers. I have given these strategies a great deal of thought and would be happy for a new owner to benefit from them.

• Expand appointment availabilities. I currently choose to limit my hours to 12 hours of patient contact per week, spread over three days per week. Thus, there is plenty of room to work more hours in the clinic, thereby growing revenue. I have laid out multiple scenarios for interested parties, detailing different income levels expected with different schedules (including options at increased rates).
  
• Bring on other physician practitioners. In addition to or in lieu of working more hours, the practice could easily support at least one more physician during the times when the office is unoccupied – I have carefully worked out how JNM could also be a very successful two-doctor practice.

• Invite more sublessees. As previously stated, the current subtenants already cover the monthly rent. However, the ample space could easily accommodate additional subtenants (many spaces go unused during parts of the week), thereby generating net rental income. 
• Reduce vacation time to under 3.5 months. I am in my “golden” years of practice, willing and financially able to take large swaths of time off. As a younger doctor I worked a fuller, year-round schedule. I know from personal experience that there is more than enough demand here to fill a full-time schedule and beyond. 
• Expand marketing efforts. I have historically met my financial targets with little marketing outside of the clinic's web presence. However, I have past and current patients to whom you could market directly. I have not leveraged these resources because I have not had the need. A little bit of marketing elbow grease could help reactivate past patients, attract new patients and increase patient word-of-mouth referrals. 
• Create social media presence and increase online visibility. As noted, I have built my dream practice without an ongoing social media/online strategy. Zero Facebook, Linked-In, Twitter, Instagram, blogging, or website improvements! Strategies like newsletters, automated patient contacts and reminders, paid online marketing and email marketing all hold great potential to improve awareness of the clinic in order to generate more revenue.
• Add more products and services. Group-delivered services, telemedicine services to expand to a non-local clientele, community health classes on topics that will draw patients, such as cleanse/detox, immune support, etc. Also, use of the infrared sauna, creation of a shot bar, and IV services are among opportunities for increasing income.