Own a booming integrative acupuncture practice in Bend

• With more sunshine than Portland or Eugene, nature on the doorstep, and great craft beer and coffee, Bend may just be the perfect small US city.
• Bend is located 175 miles southeast of Portland, where the Cascades meet the high desert, and has a population of approximately 90,000 people.
• It is known for its spectacular scenery, its thriving arts community, an incredible array of year-round outdoor activities, and its safe and family-friendly atmosphere.
• Despite a recent population surge in the past couple of decades (the city has grown by 75% since 1990 alone), Bend remains extremely laid-back and close-knit.
• It has also been recognized by various publications for its exceptional quality of life as one of America’s top small cities for young families and retirees alike.
• The clinic is located in the center of town in a building owned by and shared with two other acupuncturists.
• The office consists of 4 treatment rooms, a waiting/reception area, an office for practitioners with space for herbs and a library, and a bathroom.
• The current owner tends to work out of only two treatment rooms at a time.
• The space is modern and tastefully decorated, completely ADA-compliant, with ample free parking, large windows, and tons of light year-round.
• The clinic maintains a close relationship with nearby health providers and the local community, from which it receives many referrals.

• The acupuncture practice of Kym Garrett sees everything from subclinical and acute orthopedic conditions to chronic issues that have not responded to other medical interventions. However, Ms. Garrett has spent many years specializing in oncology—one of only two practitioners in the area who do so. As a result, about half of current patients are oncology-focused while most of the remainder are treated for neuromuscular, pain, digestive, and auto-immune conditions.
• The patient population has spanned from teenagers 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 32-40 patients per 4-day week.
• Most patients continue to come in for maintenance on a consistent basis.
• About 40% of patients pay in full at the time of service, while about 60% have insurance that covers treatments.
• Given the owner’s long history in the area, almost all patients are referred by word-of-mouth from local oncologists, primary care doctors, PTs, DCs, and other allied providers. A buyer need not be trained in oncology, as the current owner is turning away multiple new patients every week.

• The current owner has been quite uncomplicated in the methods she uses to treat patients, primarily employing Zang-Fu and channel theory diagnosis and treatment methodologies. She uses cupping and moxibustion when appropriate, as well as bodywork and relaxation techniques. About 20% of patients are prescribed herbal medicines.

The following income and expense summaries are derived from an average of income and adjusted* expenses from 2017-2021. Note that the current owner has office hours 3-4 days per week and takes several weeks off per year.

Income
Average gross yearly revenue (five years): $153,338 ($12,778/month)

Expenses
Average adjusted expenses: $71,042 yearly ($5,920/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 $82,296 per year ($6,858/month)

• The price is based on a conservative professional valuation of $128,443 with an average yearly gross of $153,338 for the past several years.
• The owner’s motivation to sell in a timely fashion has allowed her to factor in a discount off the valued 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, Facebook page, Ginkgo ClientTracker EHR program and linked OfficeAlly billing 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 the end of 2022. 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 four days per week, leaving plenty of 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, given that the practice is currently turning away new patients, the clinic could easily support at least one more provider during times when the office is unoccupied. 
• Do some marketing. The practice does no 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 creating an ongoing online presence. Blogging, upgrading 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 more supplements. Only about 20% of patients currently take a limited smattering of herbal medicines. Giving a greater percentage of patients the option of herbs and supplements offers another opportunity for increased revenue.