$700K
0.9x
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We are an established clinic that specializes in Spinal Decompression using the AntalgicTrak System. We are a 3000 square foot clinic with an open therapy suite that hold 10 curtained off stations. We also have 6 private treatment rooms. Services include Digital X-Rays, Chiropractic, Acupuncture, Decompression,...
Why we like it
- Cash flow multiple of 0.89x represents extraordinary value in healthcare services, where typical practices trade at 2-4x EBITDA. The $700,000 annual cash flow on a $625,000 asking price suggests either exceptional operational efficiency or a motivated seller creating a significant arbitrage opportunity.
- Spinal decompression is a specialized, high-margin service that creates patient stickiness through treatment protocols requiring multiple visits. The AntalgicTrak System represents expensive equipment that creates barriers to entry and justifies premium pricing versus basic chiropractic adjustments.
- Healthcare services, particularly pain management and chiropractic care, demonstrate recession resilience as patients prioritize pain relief regardless of economic conditions. The aging population in Florida creates sustained demand tailwinds for spinal and back pain treatments.
- The 3,000 square foot facility with 16 total treatment stations (10 open + 6 private) provides significant capacity for patient volume expansion. The existing infrastructure supports multiple revenue streams including chiropractic, acupuncture, X-ray services, and specialized decompression therapy.
How to improve it
- Implement membership and package pricing models to increase patient lifetime value and create predictable recurring revenue. Offer monthly unlimited plans or pre-paid treatment packages at discounted rates to improve cash flow timing and patient retention.
- Expand marketing to target the large 55+ demographic in South Florida through partnerships with senior living communities, Medicare Advantage seminars, and digital marketing focused on chronic pain management. This demographic has both the need and insurance coverage for these services.
- Add complementary services like massage therapy, physical therapy, or wellness coaching to increase average revenue per patient visit. The existing private rooms and open therapy areas can accommodate these services without major facility modifications.
- Optimize scheduling and patient flow to maximize utilization of the 16 treatment stations during peak hours. Implement online booking, automated appointment reminders, and flexible scheduling to reduce no-shows and increase daily patient capacity.
- Develop insurance billing optimization and cash-pay discount programs to maximize reimbursement rates while capturing price-sensitive patients. Many decompression and wellness services can be positioned as cash-pay premium offerings alongside insurance-covered treatments.
Diligence notes
- Verify the $700,000 cash flow figure through detailed P&L review, particularly examining whether this includes owner salary, equipment depreciation, and facility costs. The 0.89x multiple seems too good to be true and requires validation of the underlying profitability metrics.
- Analyze patient records and treatment protocols to understand average patient lifetime value, treatment duration, and retention rates for decompression therapy. The specialized nature of this service should create higher LTV than standard chiropractic visits.
- Review all equipment leases, maintenance contracts, and regulatory compliance requirements for the AntalgicTrak System and digital X-ray equipment. Ensure the specialized equipment is properly maintained and determine any upcoming capital expenditure requirements.
- Examine insurance contracting relationships, reimbursement rates, and payer mix to understand revenue stability. Verify which services are covered by insurance versus cash-pay, and assess any regulatory risks related to billing practices or scope of practice limitations.