Multispecialty Medical Clinic, 31-Year Brooklyn Internal Medicine Practice

$8.3M

Revenue

$1.0M

SDE

3.3x

Multiple

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Full Editorial Writeup

This is a fully staffed multispecialty medical clinic in a high-traffic Brooklyn location, built over 31 years by a founding internal medicine physician who is now retiring. The practice generates roughly $8.3 million in annual revenue and sees 800 to 900 patients per week across a broad clinical footprint that includes internal medicine, vascular, cardiology, pain management, rehabilitation, physical therapy, chiropractic, urology, OB/GYN, and podiatry. It runs out of a leased 2,300 sq ft space at $14,000 per month with 37 employees, 27 full-time and 10 part-time.

The economics are the story here: $1.0 million in SDE on $8.3 million of revenue is a thin roughly 12 percent owner margin, which is low for a physician practice and suggests either heavy staffing overhead, aggressive expense allocation, or revenue that leans on ancillary services with high cost of delivery. The asking price of $3.25 million is explicitly framed by the seller as a multiple of gross sales, not earnings, which is a red flag for how the number was derived. On an SDE basis it is 3.25x, which is full for a single-location practice tied to one retiring physician.

What makes it notable is the density and diversification of services under one roof in a dense Brooklyn catchment, plus a seller willing to stay 24 months, which matters enormously because buyers must be licensed medical practitioners and payor credentialing does not transfer overnight. The multispecialty mix creates internal referral flow and multiple revenue lines, but it also creates concentration risk around whichever specialties actually drive the volume and reimbursement.

Why we like it

Healthcare demand is genuinely recession-resistant, and 800 to 900 patient visits per week signals real, sticky utilization rather than a fragile book. Internal medicine and its ancillary services get used in good times and bad, which protects the top line through a downturn.
A 31-year operating history in a fixed Brooklyn location builds durable local referral patterns and payor relationships that are hard for a new entrant to replicate. Longevity plus a dense urban catchment is a real moat for a primary-care anchored practice.
The seller offering to stay on contract for up to 24 months is unusually strong and directly de-risks the biggest transition threat: credentialing, payor contracts, and patient continuity all hinging on one departing physician. That runway gives a buyer time to credential themselves and retain the panel.
The multispecialty layout drives internal referrals, so one patient can flow from internal medicine into PT, pain management, podiatry, or cardiology without leaving the building. That captures more revenue per patient and cushions any single specialty softening.

How to improve it

Rebuild the P&L on a specialty-by-specialty and payor-by-payor basis in the first 90 days to find where the 12 percent margin is leaking. With $8.3 million of revenue producing only $1.0 million of SDE, there is likely a specific cost center or low-reimbursement service line dragging the whole practice.
Renegotiate or audit the top payor contracts and confirm reimbursement rates, because a 30-year practice often has stale fee schedules that never got escalated. Even a few points of rate improvement on this revenue base flows almost entirely to the bottom line.
Attack the stated growth lever directly: the listing admits marketing is underinvested. A modest local digital and referral-marketing push in a dense Brooklyn market could add patient volume against largely fixed clinical overhead.
Right-size staffing against actual visit volume across 37 employees. A 27 full-time headcount on $8.3 million of revenue deserves scrutiny; matching provider and support hours to demand could meaningfully lift margin without hurting patient access.
Formalize and expand the internal referral pathways between specialties so more patients complete their full care journey in-house. Tracking referral capture rates and closing leakage turns the multispecialty mix from a marketing line into measurable revenue.
Lock in the retiring founder's clinical relationships during the 24-month transition by systematically credentialing the buyer or new physicians onto every payor and warm-transferring patient panels. Continuity of the payor and patient base is the entire value here.

Diligence notes

Verify how the $8.3 million revenue and $1.0 million SDE were actually calculated, because the seller explicitly priced the deal off gross sales, not earnings. Demand three years of tax returns, billing reports, and a reconciliation of collections versus billed charges, since medical revenue and collections often diverge sharply.
Scrutinize payor mix and reimbursement risk given the New York setting: confirm the split between Medicare, Medicaid, managed care, and cash, and whether any specialties depend on billing arrangements that a new owner could not sustain. The buyer restriction to licensed practitioners and the 'no Article 28 facility' note hint at regulatory structure that needs a healthcare attorney.
Confirm exactly which physicians and providers generate the volume and revenue, and whether they stay post-sale. A practice this size cannot run on one retiring founder, so the retention of the 37-person team and any 1099 specialists is central to the deal.
Examine the lease terms carefully: $14,000 per month for 2,300 sq ft is expensive per foot, and there is no real estate included. Confirm remaining term, renewal options, and escalators, because a clinic this dependent on location cannot afford lease uncertainty.
Investigate the $500,000 of included inventory, since half a million in supplies or drugs at a 2,300 sq ft clinic is unusual and may reflect ancillary dispensing or DME lines that carry their own compliance exposure. Verify what it actually is and whether it is billable or dead stock.
Review any past or pending regulatory, malpractice, or billing-audit issues over the 31-year history. Multispecialty practices with pain management and physical therapy lines draw payor and regulatory attention, so a clean compliance record is essential before closing.

Source

Originally listed on BizBuySell. View original listing →