Well-Established Chiropractic Practice for Sale in Eugene, Oregon

Located at the southern end of Oregon’s famous Willamette Valley and an hour inland from the coast, Eugene is Oregon’s second largest city.
The combined Eugene-Springfield Metropolitan Area is home to just under 400,000 people, all within reach of the office.
There are six colleges and universities within 50 miles of Eugene, including the University of Oregon, and the city has a high percentage of professionals including doctors, lawyers, architects, and educators.
Eugene is about as well situated as a place can be for lovers of the great outdoors.
Within a drive of an hour or two‚ one can choose from the ocean‚ rivers‚ lakes‚ dunes‚ mountains‚ deserts‚ rain forests or volcanoes for a variety of recreational options. The choices are that vast.
Indoors, Eugene has a dynamic mix of arts and culture, shopping and dining, entertainment and sports.
The clinic is located in the popular University neighborhood near downtown--close to both the beautiful Willamette River and the University of Oregon campus.
The office itself has been located in the same mixed-use building for more than 25 years. It has plenty of parking and is close to two bus lines.
The space has a front office which includes a partitioned receptionist’s area, a waiting room, and a collective office for storage and 3 computer workstations.
There are 5 treatment rooms in the back wing (each a dedicated space), including a traction room.
There are men’s and women’s restrooms on the floor and a unisex bathroom downstairs shared by all of the professional spaces.
The layout of the clinic is situated around a central courtyard which allows for natural light in virtually all of the rooms.

CHC is a non-specialty practice, seeing everything from subclinical and acute orthopedic conditions to chronic issues that have not responded to other medical interventions.
The patient population spans from infants to great grandparents, and everyone in between.
The clinic sees many students and employees of the local university, schools and public agencies, as well as many healthcare workers and a widely varied group from around the Eugene community.
The office is currently in-network with BC/BS and PacificSource.
Most other insurance companies offer out-of-network benefits, and about 1/3 of patients in Dr. Adams’ practice are within the Medicare system.
There are a few other panels a new owner might choose to join to expand access to care and thus the patient base.
For the first quarter of 2019, the practice averaged just over 300 patient visits per month, with about 10% being new patients.
Given the long history of the business, CHC has a large base of word-of-mouth referrals, as well as strong support from the local medical community.
A popular webpage and an exceptional online reputation on Yelp and Google Reviews are also a frequent draw for new business.

Three DCs were employed by the clinic until recently, and the practice currently has two, both of whom have been trained in standard chiropractic techniques and diagnostic methods.
The owner practices traditional chiropractic, Craniosacral Therapy and long fascial techniques, along with visceral manipulation. She also utilizes Frequency-Specific Microcurrent, Graston Method, Cox Disc Traction Therapy, Diversified Adjusting, Motion Palpation and Activator.
The owner also employs a lot of soft tissue evaluation and treatment, along with rehabilitative exercise.
This clinic has a long-standing pattern of collaboration within the alternative and allopathic communities.
The other DCs use drop-piece adjusting as part of their adjusting approach, and some IASTM (instrument assisted adjusting and soft tissue methods).
The two massage therapists use a variety of massage and deep tissue approaches along with cupping, hot stone massage and hydrotherapy.

The following income and adjusted expense summaries are derived using averages from 2015-2018. Note that the current owner works a maximum of three days per week on patient care and takes up to six weeks off per year.

Income

Average gross yearly revenue: $399,200+ ($33,267/mo)

Expenses

Adjusted expenses: $327,558 yearly (~$27,296/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.

Net Profit:

Average $71,650+/year ($5,970+/month)

$75,000 OBO. Our price is based on a conservative professional valuation of just over $125,000, with an average yearly gross of $400,000 for the past several years.
The owner’s motivation to sell in a timely fashion has allowed her to generously factor in a discount of 40% off of the valuated price for potential attrition and start-up costs on change of ownership. We expect the right person will retain nearly all 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 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 upon the buyer’s creditworthiness.
The seller may also be willing to hold a loan for the right buyer—transferring the legacy of the practice is of the highest value to the owner.
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, Facebook page, claimed Yelp page, ChiroTouch billing and electronic medical records software, and clinic-related financials.
Current employees include two part-time receptionists, a billing/accounting specialist, and a massage therapist who backs up the receptionists as needed. Another massage therapist and chiropractor work as independent contractors. All are aware of the impending sale and may be willing to stay on with the new owner at the new owner’s discretion.
The landlord is willing to transfer the lease 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 the end of the summer of 2020 (at the latest) but would prefer to make the transition much earlier. She would also be willing to stay on for a limited time to assist in the transition 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.

Work more hours. The current owner works only three days per week with direct care to patients and takes up to six weeks of vacation per year. Taking on more new patients and working more hours would obviously increase revenue.
Add an independent contractor. Given the treatment space, there is availability to add another chiropractor or allied practitioners and optimize efficient, profitable use of staffing and space.
Employ another massage therapist or chiropractor. The practice currently includes two massage therapists and two chiropractors, but has previously had three of each. Working with more than one DC allows for good coverage, continuity and freedom.
Do some marketing. The clinic does almost no marketing outside of its web presence. There is a database full of patient information that could be used for marketing directly to current and former patients, but the practice has been busy enough to satisfy the current owner over the last 5 years, so that it’s barely been used as such. 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 quite successful without putting much effort into pushing the practice’s online presence. Blogging, improving the website, 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 products. A small percentage of patients currently take a limited smattering of supplements. Giving a greater percentage of patients the option of supplements offers another opportunity for increased revenue.