The listing is a single-location outpatient physical therapy practice in Naples, FL — founded in 1994, same ownership ever since. Thirty-two years of operating history. A 19-person team. Relationships with 700+ referring physicians. And a location on a corridor that sees nearly 50,000 vehicles a day.
Oh, and three competitors within 10 miles just announced they're closing in 2026. That's not a footnote — that's a near-term revenue tailwind sitting in the listing description like it's no big deal.
Strong DSCR, fair valuation, exceptional market position, and a rare combination of 32 years of community trust and genuine near-term upside. However, the financial statements have some explaining to do — and "a lot of explaining to do" is doing a lot of work in this sentence.
The Numbers (With One Big Asterisk)
Here's what the income statement looks like after running it through OwnABiz:
| Line Item | Amount |
|---|---|
| Net Revenue | $1,562,369 |
| Total COGS | $0 |
| Gross Profit | $1,562,369 (100.0%) |
| Total Operating Expenses | $0 |
| Operating Income (EBIT) | $1,562,369 |
| Total D&A | $0 |
| EBITDA | $233,264 (14.9%) |
| SDE (Seller's Discretionary Earnings) | $319,844 |
| Net Income | $1,171,777 (75.0%) |
Let's address the elephant in the exam room: a 100% gross margin and a 75% net margin in a healthcare services business. Those numbers are not a sign of extraordinary operational efficiency — they're a sign that the seller's financials as presented are missing cost line items. A physical therapy practice with 19 employees paying zero in COGS and zero in operating expenses is a math error, not a business model.
Healthcare industry benchmarks put gross margin at 30–55% and net margin at 5–12%. The numbers in this listing are wildly inconsistent with both. Before you write a deposit check, get the actual P&L with staff payroll, supply costs, billing fees, and facility expenses clearly itemized. The SDE figure of $319,844 is what you're really buying — verify it independently.
To be fair — and we will be fair — this is almost certainly a data presentation issue, not outright fraud. The $319,844 SDE figure requires add-backs and owner compensation normalization. That work may have been done correctly. But the income statement as shown cannot be taken at face value, and that should be the first thing your due diligence checklist addresses.
Is $1.15 Million the Right Price?
At 3.59× SDE, this listing sits at the upper end of the typical industry range for healthcare practices (2×–3.5× SDE). It's not a screaming bargain, but it's also not asking you to stretch your imagination.
Industry-typical SDE range at common multiples: 2.0× = $639K · 2.5× = $800K · 3.0× = $960K · 3.5× = $1.28M. The $1.15M ask sits just above the top of that range — the premium is being priced on the 32-year history, the physician network, and the real estate optionality. The argument isn't crazy. It's just not cheap.
What justifies a slight premium here? Thirty-two years of uninterrupted operation is legitimately hard to replicate. The 700-physician referral network doesn't exist because someone put up a Google Ad — it exists because the current owner has been cultivating those relationships since the Clinton administration. That's a moat, even if it's a moat tied to a person who's leaving.
Which, by the way, is the entire plot twist of this deal. We'll get there.
The Math That Actually Matters to Your Bank
A 1.83× DSCR means SDE covers the annual debt payment 1.83 times over. You need 1.25× to even get a lender to take a meeting. 1.83× means they'll answer your calls.
The 120.8% cash-on-cash ROI on a 10% down payment is real and it's meaningful — but it relies on the $319,844 SDE holding up under scrutiny. At this stage, treat that number as a working hypothesis, not a guarantee.
"The DSCR clears the bar by a comfortable margin. The bigger question isn't whether the bank will lend — it's whether the referral network walks out the door when the owner does."
What OwnABiz Found
32 years of operating history. That's not just tenure — it's proof that this business survived recessions, COVID, and the shift to corporate PT chains without blinking. Longevity is data.
Income statement anomalies. A 100% gross margin and 75% net margin in healthcare don't reflect reality. Get a full, normalized P&L before you go any further.
Competitive whitespace opening up. Three nearby PT locations closing in 2026 means referral sources actively looking for a new home. This is timing you can't manufacture.
Key-person concentration. The referral network and the community relationships are personal. The current owner's willingness to do a 1-year transition is a good sign — verify the terms are binding and meaningful.
DSCR of 1.83×. Clears SBA requirements with room to spare. The loan underwriting story is clean, assuming the verified SDE holds.
Medicare payor mix at 67%. Predictable revenue, yes. But Medicare reimbursement rates are a federal policy decision, not a business decision. Rate compression is a real long-term risk.
Zero digital marketing today. 100% word-of-mouth means every digital dollar spent from day one is incremental volume — not just replacing existing spend. Real runway for a buyer with any marketing instinct.
Real estate is separate. The building isn't included at $1.15M. If you need the space (you do — it's a medical clinic), buying or leasing it adds a meaningful capital decision on top of the business acquisition.
Should You Pursue This Deal?
Here's where we land: this is a genuinely good business that requires a genuinely careful buyer. The underlying fundamentals — longevity, community trust, a strong regional demographic, a proven team, and three competitors about to hand you their patient rosters — are real and compelling. A 1.83× DSCR is not a fluke; it means the business generates real cash, even after you service the debt.
The concerns are specific and solvable, not fatal. The income statement needs to be rebuilt properly with a CPA who has seen the full books. The physician referral relationships need to be stress-tested — how many are personal to the current owner versus attached to the practice? The transition arrangement needs teeth in writing, not a handshake. And the real estate question needs an answer before you model your actual cost of occupancy.
The AI score of 8.2 reflects exactly that balance. This isn't a deal to walk away from. It's a deal to walk toward carefully, with the right advisors and your due diligence list fully loaded. If the normalized financials hold up, the physician network has some institutional depth, and the transition is structured well — the buyer who gets this practice into digital marketing and adds two or three of the service lines the listing describes is going to look back on $1.15M as money very well spent.
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This analysis is generated using publicly available listing data and financial inputs processed through the OwnABiz calculator. It is for informational purposes only and does not constitute financial, legal, or investment advice. Always conduct independent due diligence and consult with a licensed business broker, CPA, and attorney before making any acquisition decision. OwnABiz does not verify the accuracy of seller-provided financial statements.