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Medical Billing Software With Recurring Revenue Business For Sale

United States
Asking Price:
$17,300,000 (USD)
Sales Revenue:
$3,356,678 (USD)
Cash Flow:
$2,472,685 (USD)

This company, founded in 1988, is a developer of a recurring revenue business model medical billing software used by the behavioral health industry.

This business is truly turn-key with strong, stable, long-term staff in place. After the first two months of on-boarding a new client there is a very low level of ongoing staff time required beyond customization (which is billed for), and software updates. The software lease fees become a source of monthly recurring revenue.

This software is used in client clinics in 30 states and includes some larger healthcare systems that appreciate its enterprise-level functionality. There's a low level of annual client churn (less than 11% from 2010-present), and it has attracted, on average, seven net new clients per year.

The company has experienced very high margins (12-month EBITDA margin as of 6/30/18 was 68%), and produces high annual revenue per employee of $559,446, as well as $383,228 in EBITDA per employee.

Property information

Location:

This business is operated virtually with employees working remotely from throughout the country.

Business Operation

Expansion Potential:

Growth and expansion opportunities include: 1, initiate an active sales and marketing campaign - virtually no marketing or advertising has been done in the past; 2, increase prices - this business' monthly pricing is similar to some competitors maintenance charges AFTER buying software; 3, continued revenue growth will lead to higher margins - this business can grow by about 25% without adding additional staff (its primary expense), so most of that revenue will drop to the bottom line; and 4, offer an out-sourced billing service.

Competition / Market:

While medical billing software is a competitive field, this business has long-term satisfied clients and has enjoyed significant year-over-year net client gains without marketing the business. Clients appreciate the sole Behavioral Health focus, its enterprise level functionality, and that it can integrate well with other software systems.

Reasons for selling:

Planning for retirement

Employees:
7
Years established:
1988

Other Information

Support & training:

The owner is committed to a successful transition and will stay on for 2-5 years after closing.

Related Documents:
Home based:
This business can be run from home.
Relocatable:
This business can be relocated.

Listed by

Codiligent LLC

Broker license number: 200309075

Contact Information

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