Med Spa w/ Physician’s Assistant & Absentee Owner
Look no further than this well-respected medical spa in Omaha, Nebraska with over $480,000 in equipment including lasers and treatment technologies. The well-trained team of 12 are highly educated and very experienced in the field of lifting, clearing, filling, and smoothing. With an excellent location, incredible customer reviews, and oversight owners, this dynamic and popular company could be yours! The owner/operator cash flow accounts for the removal of the Physician’s Assistant position, while the absentee cash flow has the PA remaining on staff.
With a dedicated focus on helping clients feel their best, services range from laser treatments, peels, fillers, skin tightening, Botox, as well as facials and esthetic treatments. This team prides itself on operating with an open approach, with no sales pressure or hidden pricing. Their customer service reviews are proof of the many happy customers feeling beautiful and well cared for.
The current owners are currently operating in oversight capacities and are working a combined 10-15 hours per week. There is a bit of flexibility in management and oversight roles that could improve the profit margins further. Additional growth could be found in expanding esthetic services as well as continuing to implement cutting edge technology into the menu of services.
- Year Established: 2012
- Location: Omaha, Nebraska with clients from the city and surrounding communities
- Services: Med Spa and esthetics offerings
- Clients: Generally, females with expendable income
- Lease: 2,430 sq. ft.: Reception, treatment rooms, break room, restrooms, laundry and storage
- Reason for Selling: Divestment
- Employees: 12: 6 individuals providing direct procedures and care, 6 sales
- Hours: M-F: 9-5, with some extended hours
- Seller Training Period: 90 days transition
- Growth Opportunities: Increase esthetic services, add those with unique training and services, compose the team in a way that maximizes profitability, seek cutting edge therapies to implement
- Current Owners’ Responsibilities: Financial oversight, marketing, medical oversight: working a combined 10-15 hours per week
- List Price: $415,000
- Gross Sales:
- 2018: $1,105,344
- 2017: $1,139,072
- 2016: $1,007,974
- 2015: $911,441
- Cash Flow for an Owner/operator:
- 2018: $237,148
- 2017: $185,012
- 2016: $117,608
- Cash Flow for an Absentee Owner:
- 2018: $114,542
- Assets Included in Purchase*
- Equipment: $482,000: Treatment equipment including lasers, furniture, fixtures, computers, equipment
- A/R: $17,000 as of December 31, 2018
- Inventory: $44,000
- Build-out: $263,000
- Intangible Assets: Stellar customer satisfaction and social media reviews, excellent reputation, well-trained and experienced team, long-term customers
* amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan. - Dec.
|Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$107,330||$-35,699||$-113,999||$-294,210|
|Compensation to Owner||$0||$0||$750||$4,500|
|Other unrelated Salaries||$110,456||$102,327||$104,502||$69,184|
|11% Tax on total W2 Salaries||$12,150||$29,137||$29,130||$18,630|
|Seller's Cash Flow = Total Addbacks + Net Income||$237,148||$185,012||$117,608||$-69,932|
|Profit Margin||21.45 %||16.24 %||11.67 %||-7.67 %|
Owner/operator Cash Flow
- 21% profit margin in 2018!
Absentee owner cash flow is available in the attached documents.
Typical Clients and Services
Clients are typically women age 30-50 who have expendable income.
- A sample of services:
- Laser hair removal
- Skin lifting, tightening, clearing, smoothing
- Tattoo removal
Specific information regarding clients and services is available upon the receipt of a signed Non-Disclosure Agreement.
Total Employees: 12
- 6 Individuals providing direct procedures and care
- 6 Individuals in service representatives
- Increase esthetic services
- Add those with unique training and services
- Compose the team in a way that maximizes profitability
- Seek cutting edge therapies to implement
The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 is average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2018 cash flow was used with a prescribed multiple is 1.75. With this information, the computation is as follows:
$237,148 x 1.75 = $415,009
The fair market value found above positions the business list price at $415,000.
Purchase Price: $415,000
15% Buyer Down Payment: $62,250
10% Seller Financing: $41,500
75% Bank Loan: $311,250
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $774.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $4,090.
After business expenses and loan payments, a buyer with a 10% down payment of $62,250 would retain a profit of $178,781, which results in a 287% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $415,000 with the terms listed above, the coverage ratio is 4.06.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2018 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2018 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: