Women's OB/GYN Practice, North Georgia Growth Corridor

$1.5M

Revenue

$713K

SDE

1.7x

Multiple

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Full Editorial Writeup

Opportunity Type: Cash Free/Debt Free Asset Sale, Buy-Out Location: North Georgia Industry Focus: OB/GYN OVERVIEW: OB/GYN Practice has been a...

The earnings quality is real and margin-rich: $713K of adjusted EBITDA on $1.48M of revenue is roughly a 48% margin, which is exceptional for physician services and points to disciplined overhead and strong payer mix. Healthcare cash flow is insurance-backed and recurring, not dependent on discretionary consumer spending.
OB/GYN is about as recession-proof as medicine gets. Births, annual well-woman exams, and gynecological care continue regardless of the economy, and the demand is demographically driven rather than marketing-driven. That gives the revenue base durability through downturns that most SMBs cannot match.
The North Georgia location is a genuine tailwind. A thriving growth corridor means rising household formation and population inflow, which directly expands the patient pool for obstetric and women's health services over time. You are buying into demand growth, not just holding a static book.
The price is the story. At 1.68x EBITDA for a healthcare practice with these margins, the multiple is well below what quality medical practices typically command, giving meaningful downside protection if the operations hold up post-transition.

Verify and then optimize the payer mix in the first 90 days. Renegotiate underperforming commercial contracts and confirm all in-network status, because even a few points of reimbursement uplift on a $1.48M base flows almost entirely to the bottom line.
Add or expand mid-level providers such as nurse practitioners or CNMs to increase visit capacity without adding physician cost. In a growth corridor, the constraint is provider hours, and leveraging APPs is the cleanest way to scale revenue against a fixed overhead footprint.
Build ancillary revenue lines that OB/GYN practices commonly under-monetize: in-office ultrasound, bone density, aesthetic and wellness services, and lab work. These carry high margins and deepen the per-patient value without acquiring new patients.
Modernize patient acquisition and retention with online scheduling, review generation, and a referral pipeline from local primary care and pediatric practices in the growing corridor. Most single-practice OB/GYN offices run on word of mouth and leave demand on the table.
Institute recall and prevention workflows so annual exams, prenatal visits, and screenings are systematically booked. Filling the schedule with existing patients is the cheapest revenue in medicine and stabilizes cash flow.
Right-size and cross-train the front-office team to reduce claim denials and speed collections. Tightening the revenue cycle shortens days in AR and protects the margin that makes this deal attractive.

The single most important question is provider dependence. Confirm whether the $713K EBITDA runs through one owner-physician who is exiting, and if so, whether they will stay, whether a replacement can be recruited, and what compensation that provider would require, because that number could materially reduce true buyer earnings.
Scrutinize the payer and reimbursement mix. Pull a detailed breakdown of commercial versus Medicaid/Medicare, obstetric versus gynecological revenue, and any concentration in specific plans, since OB reimbursement and malpractice exposure vary sharply and affect both margin and risk.
Review the quality of the adjustments to EBITDA. A cash-free, debt-free asset sale with a 48% margin needs the addbacks fully documented, including owner compensation normalization and malpractice insurance, which is a real and recurring cost in OB/GYN.
Confirm malpractice history, tail coverage obligations, and claims exposure. Obstetrics carries the highest liability profile in medicine, so understand the claims record, current premiums, and who bears the cost of tail coverage on the exiting physician.
Validate the growth-corridor narrative with hard data. Check patient volume trends, new patient counts, and payer credentialing status over the last three years to confirm the population growth is actually translating into a rising patient panel rather than a flat book in a growing area.

Originally listed on Sunbelt Business Brokers. View original listing →

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