Brooklyn Multi-Disciplinary Medical Practice

$8.3M

Revenue

$1.0M

SDE

3.0x

Multiple

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Full Editorial Writeup

This is a long-established, multi-disciplinary medical practice operating in a densely populated section of Brooklyn within Kings County. The business is described as a fully staffed, turn-key operation generating roughly $8.3 million in annual revenue. Multi-disciplinary practices in dense urban markets like Brooklyn typically combine primary care, physical therapy, pain management, diagnostics, and ancillary services under one roof, which diversifies revenue across multiple billing codes and payer types.

At an asking price of $3 million against $1 million in reported cash flow, the deal carries a 3x multiple. The headline revenue-to-cash-flow ratio implies a roughly 12 percent margin, which is on the lighter end for a medical practice and suggests either heavy staff and clinician comp loads or aggressive add-backs. For a buyer with a clinical background or an existing healthcare platform, a practice already producing eight figures of top-line in a captive borough market is a meaningful operating base.

The caveat is that medical practices live and die on physician relationships, payer contracts, and regulatory compliance. The value here is heavily tied to who is generating the revenue, whether those clinicians stay, and how clean the billing and licensing structure is. This is a deal where the diligence is the deal.

Why we like it

Healthcare is among the most recession-resistant categories there is, and a multi-disciplinary practice spreads revenue across several service lines and payer types rather than a single specialty. Patients do not stop needing primary care, PT, or pain management in a downturn, which makes the $8.3M top line relatively defensible.
A 3x multiple on $1M of cash flow is reasonable to attractive for a healthcare practice, especially one with this revenue base in a dense Brooklyn market. If the cash flow proves clean and transferable, the entry price leaves room for both debt service and upside.
Brooklyn within Kings County is one of the densest patient catchment areas in the country, which supports stable demand and limited need for marketing spend to keep the schedule full. A busy, fully staffed practice in this geography has a structural advantage on patient volume.
The business is described as turn-key and fully staffed, meaning the operating infrastructure, clinicians, and front-office systems are already in place. For a buyer with a healthcare platform, this is a bolt-on with immediate scale rather than a startup.

How to improve it

Audit the payer mix and renegotiate or optimize reimbursement contracts in the first 90 days. Many independent practices leave money on the table with stale fee schedules and under-coded visits, and tightening this directly lifts the 12 percent implied margin.
Implement a modern billing and revenue cycle management process to reduce denials and accelerate collections. Multi-disciplinary practices often have leakage across service lines, and recovering even a few points of net collection rate flows straight to cash flow.
Add or expand high-margin ancillary services such as diagnostics, in-house imaging, or physical therapy if not already maximized. These services leverage existing patient flow and physical space without proportional increases in clinician overhead.
Lock in the key clinicians with employment and non-compete agreements before close. Revenue in a medical practice walks out the door with the doctors, so retention agreements are both a value-protection and value-creation lever.
Build a referral engine with surrounding primary care physicians and specialists to deepen the patient funnel. In a dense market, structured referral relationships can fill capacity that marketing alone cannot.
Tighten compliance and documentation around coding, licensing, and any Stark or anti-kickback exposure. Cleaning up compliance reduces future liability and makes the practice far more sellable at a higher multiple down the line.

Diligence notes

Reconcile the $8.3M revenue claim and the $1M cash flow figure against tax returns and a quality-of-earnings review. A 12 percent margin is light for a medical practice, so understand exactly what is driving it and whether add-backs are legitimate and recurring.
Identify which clinicians generate what share of revenue and whether they intend to stay post-close. Concentration in one or two physicians is the single biggest risk in a practice acquisition, and their departure could halve the business.
Review payer contracts, reimbursement rates, and accounts receivable aging in detail. Understand the split between commercial, Medicare, Medicaid, and any cash-pay, and watch for slow collections or aged receivables that inflate reported revenue.
Conduct a full regulatory and compliance review including state medical board licensing, corporate practice of medicine rules in New York, billing compliance, and any history of audits or recoupment demands. Healthcare carries material regulatory liability that can survive the sale.
Confirm the lease terms, location stability, and whether the space is adequate for current and expanded service lines. A turn-key Brooklyn practice is only as good as its real estate security, so verify the lease has runway and reasonable rent escalations.

Source

Originally listed on BizBuySell. View original listing →