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Impressive, High Cash Flow Physical Therapy Pract.

Asking Price
APRIL 13, 2022

We are pleased to offer for sale an outstanding 20 year old mid-Michigan physical therapy practice. The founder-owner-seller of this high performing, cash flowing practice plans academic pursuits post-sale and after an open-ended transition period to help the successful buyer assimilate totally all facets of the practice.

The practice is conveniently located in a free standing 5100 square foot late model leased facility nestled in an attractive office park just off the intersection of two major surface streets and minutes from a major downtown area. There is ample parking at the door.

This practice has an impressive array of equipment, much of it rarely seen in physical therapy practices. All of the equipment, including this partial list, is included in the sale:

• five Octane machines • five Matrix machines – treadmill, elliptical, bike and two Accent trainers • two Scifit upper body bikes • four Matrix neuro machines • one Versa multi-column • one Biodex balance computer machine • one each Matrix Leg press and Leg extension machines • one SwimEx Hydrotherapy one piece pool • one Biodex system 3 isokinetic machine

The equipment (a) has a combined estimated value in place of $250,000; (b) is debt free; (c) is in excellent condition; and (d) is of course included in the sale.

The practice offers treatment of arthritis to vestibular rehabilitation and everything in-between. The practice also has a significant number of specialties from aquatic therapy to ultrasound and again, everything in-between. The practice’s excellent website details all its capabilities.

This practice operates Monday-Friday and is manned by the full-time owner therapist, a second physical therapist, a physical therapy assistant and several physical therapy interns. A full-time receptionist and a full- time office administrator round out the on-hand staff. The seller is confident that the entire team will stay with the organization after the sale.

The practice generated average annual revenues (95% from insurance company payments and 5% from private pay) during the Covid years (2020-21) of $665,000 after average annual revenues in 2018-2019 (pre-Covid) of $850,000. SDE (seller’s discretionary earnings – the normalized cash flow available to pay an owner-operator and service debt) was significant in all four years: $365,000 annual average for 2018-2019 and $315,000 annual average for 2020-2021.

The practice is attractively priced at $848,000, a 2.5x multiple of the four year average of $338,000 of SDE. The seller will offer a $100,000 seller note to a qualified buyer. The seller note combined with 10% buyer cash and the balance of the purchase price from bank financing results in a post debt service (i.e. after bank financing and after the seller note) of an impressive, annual, discretionary $239,000 cash flow for the buyer.

For more information on this exceptional physical therapy practice business opportunity, please contact Mike Greengard ([email protected] or 616-450-0707).

Contact information

Mike Greengard
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Reference ID
Healthcare, Physical Therapy