Own a 40 year-old turn-key naturopathic-acupuncture practice in Montana

• The City of Helena is tucked away in the foothills of the Rockies along Interstate 15, roughly midway between Glacier and Yellowstone National Parks.
• With a population of about 35,000, and another 50,000 in the surrounding area, Montana’s capital city is fast becoming a base for post-Covid telecommuters looking for a better quality of life.
• The city’s grand architecture, numerous museums and historic sites offer a real glimpse into the rich and deep gold rush history of the city.
• Helena also boasts a vibrant cultural center with a busy event calendar, eclectic shopping, art galleries, terrific local bands, great restaurants, local microbreweries, and an epic trail system.
• Outdoor enthusiasts will never tire of the endless choices of activities available throughout the region in all four seasons.
• The building within which the clinic is housed is owned by the clinic owner and is also available for sale or may be leased. The 2-story red brick and granite building is located one block from Helena's historic downtown district within walking distance to multiple brew pubs, cafes, and coffee shops.
• The main floor has a reception area, a practitioner's office, 3 treatment rooms, a half-bath, and a storage area with copier, sink, and cabinets.
• The 2nd floor has two large treatment areas, a full bath, and a large common room with sink and cabinets (this room his has been used as a reception area when the 2nd floor has been rented to other practitioners).
• The 2nd floor can also be used as a living space.
• The building also includes a finished basement. The largest room in the basement is presently used for IV treatments.
• There are additional rooms which include a private treatment room, alternate office space, a half-bath, and storage areas. An abundance of off- and on-street parking is available for patients.

• NAC is a non-specialty practice, seeing everything from subclinical and acute conditions to chronic issues that have not responded to other medical interventions. That said, most patients are seen for pain management, clinical nutrition, herbal medicine, and hormone prescriptions.
• The patient population has spanned from infants to great grandparents and everyone in between.
• The majority of the current patient load consists of those between the ages of 25 and 60 seeking resolution of chronic conditions, and patients come from a wide geographic area.
• The practice income is roughly 70%/30% insurance/cash. Given the owner’s long history in the area, almost all patients are referred by word-of-mouth, while some come through the practice’s online presence.

• Montana has a very progressive primary care license which allows for broad prescription rights. NAC maintains a large, lucrative natural-product pharmacy, and about 80% of patients purchase supplements regularly from the office.
• Because of the clinic’s focus on pain-management, the current owner does trigger point and prolotherapy and has a very busy acupuncture practice.

The following income and expense summaries are derived from an average of income and adjusted* expenses from YE2018-20. Note that the current owner sees patients three days per week and takes up to four weeks off per year..

Income

Gross yearly revenue: $392,868 ($32,739/month)

Expenses

Adjusted expenses: ~$198,000 yearly ($16,500/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:

~$194,800 per year (~$16,230/month)

• The price is based on a conservative professional valuation of almost $300,000, with an average yearly net of $200,000 for the past several years.
• The owner’s motivation to sell in a timely fashion has allowed him to generously factor in a 55% discount off of the valued price for potential attrition and start-up costs on change of ownership. He expects the right person will retain his 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, and clinic-related financials.
• The practice currently employs an excellent part-time office manager who takes care of the phones, appointments, and insurance. She is aware of the sale and may be willing to stay on with the new owner by mutual agreement.
• The current owner’s goal is to surrender the practice in 2021. He would be willing to stay on for a limited time to train a new owner in his 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 limits himself to only three days of patient contact per week, leaving. Thus, there is plenty of room to work more hours in the clinic.
  
  
• Add additional practitioners – In addition to or in lieu of working more hours, the practice could easily support at least one more provider. The current owner is so busy that he has a waiting list and has been turning away new patients.

• Add sublessees – Subtenants could easily cover the monthly rent or mortgage.

• Do some marketing - The practice does very little marketing outside of its web presence. There are file cabinets 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, 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.