Nowadays a collections business could be conducted from almost anywhere, but this profitable, cash-flowing agency that specializes in medical billing makes a pretty good argument for staying put. For one thing, this collections agency’s average recovery rate is 10 points higher than national rates, while at the same time maintaining the goodwill of its clients. Plainly, they’re doing something right.
For another, it’s located in rural area, just a little south of heaven. And while there are a handful of other collections agencies in the region, the competition for clients is less intense than in more highly-populated areas.
This collections agency, has been in business for 30 years, but its roots in the community go back 95 years when one office was started. The firm, which is now for sale because the owner is retiring, specializes in ultra-reliable medical billing with more than 80 percent of current collection assignments coming from medical clients. The agency includes an in-house attorney-directed legal department licensed in 2 states.
The listing price is $5,650,000.
Five reasons to buy this company now:
o Highly-tenured staff and management delivers recovery rates that are 10 points higher than national averages
o Steady, historically-profitable, cash-flowing business
o Concentration on medical billing
o Recent upgrades to operations including new cloud server, hosted dialer system, and Windows upgrades on all workstations
o Buy the business, get $2.6 million in real estate for free!
There are four approaches the new owner could take when buying this company: o Take a steady hand approach by making incremental improvements o Gear up for growth by bolstering sales & marketing efforts o Merge operations and trim redundant staff o Harvest cash flow by consolidating operations
o Company is cash-flow positive. You’ll get paid even as you make your management changes. o Company's recovery rates average nearly 30%, almost 10 points higher than national averages. o Company's experienced staff has hundreds of years’ of combined experience. o 87% of assignments come from medical clients, but only 45% of medical listings come from company's 5 largest accounts. Company is not overly-reliant on a few large accounts
120 hours training, + a 5-year non-compete.