Very Profitable Upright MRI Center In North East For Sale

Business description

Our client is a 6-year old ACR-accredited, free- standing UPRIGHT® imaging center in a very affluent town near major metro areas. The Center is solidly profitable with a single modality (MRI), but with additional modalities, its revenues and profits can easily jump up significantly.

Its FONAR UPRIGHT MRI provides a significant competitive advantage. Not only it is able to accept very heavy patients (up to 550 pounds) and patients which are severely claustrophobic, but the UPRIGHT MRI is the only scanner able to do the images in the upright, weight-bearing positions and can be very useful in examining anatomy under weight-bearing position. (Other MRIs have the patients lying down while taking their image). So often, physicians prefer these types of images, e.g. say they are looking at herniated disks, where the herniation in conventional MRI images can look far less sever that what it actually might be.

Because of its uniqueness, patients routinely travel up to one hour to come to this center, and it is not unusual for them to come from as far as three to four hours away.

SERVICES
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The Company provides UPRIGHT® MRI and MRA scans. With its state-of-the art image storage and retrieval system, referring physicians are able to log on to the Company’s Picture Archiving and Communication System (PACS) to receive real-time scans of their patients and have direct access to the Company’s radiologists. Majority of the referring physicians are orthopedists, neurologists and chiropractors. Company accepts all major private insurances and Medicare and Medicaid.

REASON FOR SALE
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The Seller owns another non-related internet based business that demands the majority of his time. This business is growing and requiring even more attention.

PERSONNEL
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Three full time and two part time employees work in the business. There is a full time Practice Administrator/Billing Manager, a full time Front Desk person, a full time Radiological Technologist, a part time Front Desk person and a part time Radiological Technologist. All are long-time employees of the center.

FACILITIES AND EQUIPMENT
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The Center operates from a 2,250 square foot leased facility. The space has a private entrance on the first floor of a very attractive, three-story, Class A, professional building. The building is located near well traveled roads, with ample parking and convenient handicap accessibility.

There are five years remaining on the current lease and is renewable for additional two five-year terms.

The medical and office equipment used in the day to day operation of the Center has a fair market value of $1,233,000.

GROWTH PROSPECTS
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The company is currently showing solid year-to-year results with an attractive EBITDA. However, the center currently offers a single modality. Revenue can be increased significantly by offering additional modalities (CT-scans, X-rays, Ultrasound, mammograms etc). There is empty space for lease available in the same unit adjacent to the current space and can be added on to the current business.

A relatively small number of FONAR units in operation today (only 126 FONARs in the US today) and their unique capabilities is also a great marketing tool. A larger company with better, more integrated marketing can really drive additional volume to this center.

ATTRACTIVE OPPORTUNITY
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This is an attractive opportunity for many different types of buyers.

• A profitable, turn-key opportunity for a buyer / investor looking for a medical business.
• It is particularly attractive for radiologists to get into their own business as they would also get the cash flow that currently goes to outside radiologists.
• It is also attractive for larger chains and centers who can gain valuable market share and increase profit margins by driving down costs and using their marketing ability to drive up scan volume
• It may also be appealing to private equity groups already in imaging / complementary businesses to add additional revenues.

Some of the attractive aspects for a Buyer are:

• FONAR, the only manufacturer of UPRIGHT® MRI scanners, has 126 units in operation in the United States, and 141 worldwide. When properly marketed, this small number of available units drives referrals to these centers.
• The Company has a well-trained, highly respected staff that would be willing to remain in place with a new entity.
• Additional services could be added in the same space: Ultra sound, digital x-ray and bone density. CT scanning can be adding by leasing 900 square feet adjacent to this space. (The center currently refers out in excess of 90 CTs per month). There is a license in place for CT scanning.
• In a strategic acquisition, economies of scale can be capitalized upon and existing radiologists could decrease Cost of Goods.

FINANCIAL SUMMARY
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• Gross Revenue (2011): $1.1 million
• Adjusted EBITDA (2011): $433,000 / $548,000 (for a radiologist buyer)
• Lease Rate: $6,700 per month
• Asking Price: $2.1 million

Property information

Real Estate:

Lease