(AA) Urgent Care and Med Spa Hybrid - listed for $8M?

Hi folks, Will here from the Acquisitions Anonymous team. Today's episode looked at a unique combination of urgent care and med spa services located in sunny Orange County, California, listed at a hefty $8 million. Takeaways - $8M asking price on $1.5M in earnings seems high; be cautious about inflated valuations. - Good location, confusing mix of service offerings - If you're not a physician, financing could be tricky - Grammatical errors in a business listing are not a good sign! (And what the heck is "very semi-absentee"?) The details This business is a hybrid urgent care and med spa, boasting a gross revenue of $3.5 million and seller’s discretionary earnings of $1.5 million. Established in 2021, it operates out of a spacious 3,500 square feet location and offers a wide range of services—from urgent care and COVID testing to med spa treatments. It’s in a desirable area, catering to the affluent South Orange County clientele. However, the asking price raises some eyebrows given the financials, especially when the monthly rent is about $8,500, adding up to nearly $100,000 a year. One of the main issues with this listing is the valuation. At an asking price of $8 million, it seems to sit at a 5x+ multiple, which feels steep considering the mixed identity and diverse service offerings. The owner is described as “very semi-absentee,” which could raise questions for potential buyers about how much involvement they might need to maintain the business. In a market that’s seen an overabundance of urgent care clinics, it’s tough to understand what exactly you’d be buying into. What’s the primary revenue source here, and does the hybrid model actually work? You can listen to the whole episode here: https://www.youtube.com/watch?v=7TuY5XKAkf8 And check out the business listing direct: https://www.bizbuysell.com/business-opportunity/urgent-care-for-kids-and-adults-full-service-plus-med-spa-3405-sqft/###-###-#### /