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Seeking To Purchase Existing Medical Cosmetic Enhancement Practice
Posted by: sally mechur on 3/2/2017 4:11:28 PM
Funding Needed:
$100k - $250k
Category:
Healthcare & Medical / Pharma
Location :
Hoboken, USA
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Favorited : 0 times
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Description:
Business Description:
The current owner began the company’s operations with a single office. He offers a variety of medical cosmetic enhancement services to both men and women. As the business grew he opened up an additional office in South Jersey, and with the success of the first two offices, the doctor decided to open an office in a more urban location.

With 52,000 people located in one square mile, Hoboken, NJ was the perfect fit. After a search for the best location, the doctor opened this office in a small boutique style facility, just steps from the Hoboken PATH. A key staff member from the South Jersey office was brought in to oversee the establishment and operations at the Hoboken office as the General Manager.

The doctor has decided to cut back his time and has sold the South Jersey location; however, in his arrangement, the office continues to handle the day-to-day operations and schedules patient visits with the doctor who comes into the office to meet with patients one day a week. He is seeking to sell the Hoboken office to the current General Manager and to follow a similar business model. The doctor anticipates he will remain an active employee in the practice for at least the next 5 years.

Unique Value Proposition:
At the present time, most of the competition for services comes from offices that are primarily dentists, dermatologists or internists. These locations offer similar services as an “add on” to their primary practice. The Company is the only facility in Hoboken practicing these procedures and injections on a full time basis.

The overall target market for the Company includes women between 25 and 55 with an annual household income of $80,000 to $150,000. The younger demographic tends to seek out lighter aesthetic services such as laser hair removal, lip fillers and spray tans. The older demographic tends to seek out Smartlipo and Botox procedures.

As a general rule, the target market is quite similar to the market of individuals who are seeking plastic surgery procedures. Part of the reason for the popularity of medical cosmetic procedures is the natural desire to preserve youth and health. The baby boomer generation has reached the age where these procedures are in greater and greater demand. In addition, younger individuals are tending to seek out medical cosmetic procedures to enhance their appearance.

Sales/Marketing:
The most powerful and effective means of generating new business is word-of-mouth. People turn to trusted friends or colleagues for recommendations regarding medical cosmetic providers. Because word-of-mouth referrals are free, you can’t beat the return on investment that a positive referral can generate. To stimulate word-of- mouth, the Company will actively ask customers for referrals and recommendations. The driving force behind consumers’ desire to share positive stories about organizations is the trust they have in the products, services and people associated with those entities. Under the new ownership, the office will continue to build that trust with every customer interaction. The practice also intends to make full use of an internet-based marketing strategy. More and more as people are seeking out new services and they are initially turning to the Internet. By increasing the footprint that the practice has on the Internet, the new owner feels they will be in a better position to connect with new customers while also keeping current customers up to date on new developments.

Key Risk Factors:
With any sale of an existing business there are always a number of risks that are faced by the new owner. Perhaps the biggest risk is associated with will the existing clients continue to utilize the company’s services. The fact that the doctor will be remaining with the operation will assist with the transition. This will provide current customers with confidence in the new operation.

Exit Strategy:
The new owner of the Company intends to remain active in the industry for many years. He understands that investors may choose not to retain a long-term equity position with the firm. With this in mind, the new owner intends to repay all investors, including a significant return, within the first 5 years. The specific rate of return will be negotiated at the time of investment.

Industry
Medical Cosmetic Enhancement Services

Revenues
2014 Actual: $165,000
2015 Actual: $213,000
2016 Actual: $260,000
2017 Projection: $325,000
2018 Projection: $500,000

Financing Sought
$162,000

Use of Proceeds
$122,000 to purchase the existing operation and an additional $40,000 to be used to enhance marketing and promotion efforts and to assist in re-branding the clinic.

Additional Documents Available
Business Plan, Executive Summary
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