$884K
5.9x
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This is a well established Miami-based medical center and wellness practice operating under a diversified...
Why we like it
- Healthcare is about as recession-resistant as cash flow gets, and the wellness blend likely adds a high-margin cash-pay layer that does not depend on insurer reimbursement timing. At $884k in cash flow, this is a real operating business rather than a lifestyle practice, which gives a buyer room to add management and still clear debt service.
- Miami is a structurally favorable medical market with a large, aging, and growing population that drives durable demand for both clinical and wellness services. A practice described as well established has already cleared the licensing, credentialing, and competitive hurdles that make this industry hard to enter cold.
- The diversified model spreads risk across multiple service lines rather than betting on one procedure or one payer. That diversification cushions against reimbursement cuts to any single CPT code and creates natural cross-sell between medical and wellness patients.
- The 5.88x multiple is reasonable for a healthcare cash flow of this size if the earnings are clean and transferable. Practices with strong cash-pay components often trade higher because the revenue is stickier and the margins are better than insurance-dependent peers.
How to improve it
- Build a clear payer and service-line P&L in the first 90 days so you know exactly which lines drive the $884k and which are loss leaders. This is the single most valuable underwriting and operating tool, and it tells you where to push price and where to cut.
- Expand the cash-pay wellness menu, since these services carry the best margins and avoid reimbursement lag. Items like aesthetics, IV therapy, hormone optimization, and membership-based wellness can be layered onto the existing patient base with minimal incremental fixed cost.
- Launch or systematize a membership or recurring care model to convert one-time wellness visits into predictable monthly revenue. Recurring revenue both lifts the eventual exit multiple and smooths the cash flow that drives debt service.
- Invest in modern local digital marketing and reviews, since Miami medical and wellness patients increasingly choose providers via search and reputation. Even a modest improvement in patient acquisition cost compounds across every high-margin service line.
- Reduce dependence on any single owner-physician by adding mid-level providers and clear clinical protocols. Spreading patient relationships across the team protects revenue at transition and makes the business genuinely manager-run.
- Audit and renegotiate vendor, lab, and supply contracts, which are often overlooked in owner-run practices. Small percentage savings on recurring medical supplies and lab fees drop straight to the cash flow line.
- Tighten front-desk and billing operations to capture missed charges and reduce claim denials. In diversified practices, billing leakage across many service codes is common and recovering it can add meaningful margin without new patients.
Diligence notes
- Get revenue, payer mix, and a service-line breakdown immediately, since none are disclosed and you cannot underwrite a 5.88x multiple without them. Confirm what share of the $884k is cash-pay wellness versus insurance-billed medical, because those carry very different risk and margin profiles.
- Verify the cash flow figure against tax returns and bank statements, and confirm what owner add-backs were used to reach $884k. Scrutinize any add-backs tied to the owner-physician's own clinical production, which may not transfer to a buyer.
- Examine licensing, credentialing, and regulatory compliance carefully, including any physician ownership requirements under Florida law and the structure of any management arrangement. Wellness practices can drift into gray areas around scope of practice and medical-director arrangements that create real liability.
- Determine how much revenue depends on the seller's personal patient relationships and referral network. If a meaningful share walks out the door with the owner, the transferable cash flow is materially lower than the headline.
- Confirm the lease terms, location quality, and any landlord relationship, since a Miami medical location is operationally critical and a near-term lease expiration is a hidden risk. Verify equipment condition and whether any major capital expenditure is looming.
- Review malpractice history, insurance coverage, and any pending or past regulatory actions against the practice or its providers. In a diversified medical and wellness model, you are inheriting the liability of every service line, so understand the full claims and complaint history.