Tech-3307: High Field MRI, Multimodal Imaging Center in an Upscale Location on West Coast

Tech–3307: High Field Imaging Center in Excellent Location on West Coast

Turn-Key Running Center, Offered at a Steep Discount Due to Owner’s Health


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The ACR-accredited center in a very upscale location in large urban city was started in 2012 with a new high field MRI (1.5T).

mri machineA couple of years ago, the Center was in the market, and was listed at $600K, roughly equivalent to the asset value of the equipment (but not counting the buildout). The Center has a buildout to accommodate CT, and recently it has brought in X-ray and ultrasound modalities as well. At that point, the center was generating revenue of between $300-$350K and was either around the break-even point or slightly above it. The radiologist (owner’s husband) was semi-retired at that point and the center was running part-time. Recently, the radiologist, who is owner’s husband and who is in charge of the day to day operation of the center, underwent a neck surgery and is not too well. So they have decided to sell the center quickly at a deep discount at $350K. This would cover some of the debts that they have incurred.

Since the center is being sold at a steep discount below its asset value, the owners are withholding the financials at this stage of the process and will reveal it only after a serious offer is obtained from a qualified buyer. However, the owners have mentioned that the scan volume is 70-80 scans per month and based on this the approximate revenue would be around $250-300K per year. It is estimated that the Center will need about $325K annual revenue to break even.

This opportunity is ideal for:

  • Someone who is familiar with radiology business and confident that they can bring in more volume
  • Someone who either already has a center and want to enter the market around Burbank
  • A radiologist who can network with providers and bring in more volume and can also read the scans

ASSETS

  • Symphony 1.5T high field MRI + 2 Chiller coolant Dimlex + MRI coils and computer (2012 Symphony 1.5T short Bore) ….in place value around $500K
  • Build-out, shielding, electrical, coolers (MRI and CT): $400k
  • X-ray – Digital X-ray (digitalized 3 years ago) C-arm SR-130
  • Ultra sound machine Toshiba SSH-140A
  • CR3600+Dell computer and monitor and digital printer
  • Computer PC #4 with monitors.
  • Fax and printer#2
  • Office desk #3
  • Chairs #17
  • Phones #5

In-place Market value of assets including the build-out and installation cost is estimated at around $800K (equipment plus installation plus build-out)

 FACILITIES

The Center has 2,000 sq. feet area and is in an 8-floor professional / medical building with about 10 physicians in the building. The center is also on a renewable 5-year lease with current lease set to end in November 2019. Landlord would be willing to offer a new lease to buyer. The seller was paying approximately $6,800 per month for rent plus property taxes (approximately $5,500).

The Center has a build-out and space for a CT-scanner as well should the buyer wants to add that modality. According to the seller, at its peak (around 2005) when there was an MRI and a CT scanner, it used to gross more than $2 million (under a different owner).

GROWTH PROSPECTS

An energetic owner ( a businessperson or a radiologist) can certainly take advantage of an established platform and grow the business. The Center has over 30-40 physicians within a 1- mile radius and 10 within the building itself.

ASKING PRICE

$350,000. All the equipment and build-out come debt-free. The asset value of the equipment in use, and buildout is estimated at $800K. The Center is sold essentially as a turn-key, multi-modal, high-field center, far below the value of its principal asset, for a quick sale because of the health of the owner.


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