Executive Summary

Business Description

This highly profitable hair-transplant practice has been providing service to their patients for over 20 years and has a strong “brand” due to years of heavy advertising. Revenues and net are up strongly in 2011. The practice is based in Southern California, one of the glamour centers of the world. They have a well maintained data base of over 24,000 past and potential clients that is of great value in that this service has a long sales cycle and 40% repeat (second and third grafts), and referral clients. No HMO’s or ObamaCare to be concerned with as all patients are private pay with an average procedure billing of over $5,000. The practice has one fully staffed surgical center and five strategically located executive suite, satellite offices staffed by long-term and knowledgeable sales counselors.

This is a great vertical integration opportunity for an anti-aging company platform such as a dermatologist, plastic surgeon or cosmetic – Botox/Restylane doctor. 1/3 of hair transplant doctors are dermatologist, 1/3 have are emergency room docs and the other third come from all disciplines, including psychiatry. This practice is ideal for any doctor, even those without basic surgery skills as they could be quickly trained by the seller. This is a very profitable turn-key medical practice with no insurance billing and collection hassles. Because of his age, the owner/physician is working the practice part time but the practice could be ramped back up to its prior revenue ($3M+) and net ($500K+) levels. Doctor/Owner willing to assist buyer for an extended period of time. Pre-approved for SBA financing.

General Information

Year Established: 1980

Employees: 11 long-term and highly skilled lab technicians and 4 commissioned sales consultants for a total average monthly salary of $47,000.

Facility: 4,187 square foot executive and surgery suite facility, including five fully equipped surgery rooms, at a total monthly cost of $9,372 with a 90 day option to vacate, plus leases on five satellite “Executive Suite” offices, all on short term leases.

Hours: 9 a.m. to 5 pm Monday through Friday with the doctor typically only working from 9 a.m. to about 4 p.m.