This Medical Staffing at $2.5M Needs Verification
Priced at or below the benchmark multiple and coverage clears the 2.0x Bulletproof threshold. The margin runs well above the benchmark, which is the part to verify first.
This is a healthcare / medical business listed at $2.5M, generating $1.5M in annual revenue and $1.8M in seller's discretionary earnings. At a 1.39x cash flow multiple, the asking price comes in below the benchmark of 3.00x for healthcare / medical businesses. The profit margin is 120%, above the 19% industry average.
We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.
Deal Snapshot
The deal snapshot tells a clean story. Revenue of $1.5M with a 120% margin means the business runs well above the 19% benchmark for healthcare / medical businesses. A gap that wide often means the owner is doing work a buyer would have to pay someone else to do, so confirm how much of that margin survives a change of ownership. The 1.39x multiple is favorable, coming in below the industry average.
Financing Overview
Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.
Why the Numbers Matter
The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.
The post-debt cash flow of $1.4M per year is what is left after every loan payment on the figures entered. On a $250,000 cash investment, that is a strong return, and it is well above the $100K minimum threshold that the Bulletproof standard requires. This figure is calculated before any cost of replacing the owner’s own role in the business. Where the seller is also the person producing the revenue, a buyer should subtract what it would cost to hire that role before treating this as take-home pay.
The DSCR of 4.71x means the business generates $4.71 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears both with room to spare, which means you have a real safety margin if revenue softens or costs spike unexpectedly.
The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $1.2M in revenue (down from $1.5M), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.
Industry Context
📈 How This Deal Compares to the Healthcare / Medical Industry
Healthcare / Medical sits in the lowest default band tracked here. Licensing requirements and established client relationships tend to keep revenue steady through a transition. The SBA default rate of 2.8% is well under the 5.1% all-industry average.
The healthcare / medical industry carries a lower-than-average SBA default rate at 2.8%, compared to the all-industry average of 5.1%. Combined with a deal that performs well on the fundamentals, this is the profile lenders like to fund.
Strengths and Risks
✓ What Works
- Strong DSCR of 4.71x clears the 2.0x Bulletproof minimum
- Fair pricing at 1.39x earnings
- Strong post-debt cash flow of $1,418,158 per year
- Adequate working capital reserves
- Survives a 20% revenue decline stress test
⚠ Watch Out For
- Key-person risk: verify the current owner's role in daily operations
- Lease terms and renewal risk
Who This Deal Is For
Best fit for:
Owner-operators with industry experience or management background who want a business that cash flows from day one.
First-time buyers looking for a straightforward acquisition with solid fundamentals.
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Frequently Asked Questions
Is $2.5M a fair price for a healthcare / medical business?
At 1.39x seller's discretionary earnings, this asking price is below the benchmark multiple of 3.00x for healthcare / medical businesses. Deals priced below 2.50x are generally considered favorable for buyers, while anything above 3.70x starts to look expensive.
What is a good profit margin for a healthcare / medical business?
The benchmark profit margin for healthcare / medical businesses is approximately 19%. This listing operates at a 120% margin, which is above average and suggests the business is managing costs effectively. Margins above 14% are generally considered healthy at this scale.
Can I buy a healthcare / medical business with an SBA loan?
Yes. Healthcare / Medical businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $2.5M deal, that means approximately $250,000 in cash at closing. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 4.71x DSCR comfortably clears both thresholds.
How much do healthcare / medical business owners actually make?
Owner earnings vary widely based on revenue, pricing, and operational involvement. This healthcare / medical business generates $1.8M in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $1.4M per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.