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High Profit Margin Full Service Marketing and Consulting Agency, Home Based, Relocatable, Growing, Well Established, Easy to Learn

ServiceFor Sale in Denver, CO

Listing ID: 31915 | Broker Listing ID: BLP205618

Financial & Assets Details

$621,000
$344,000

About the Business

Yes
Yes
2014
5
Yes

Business Description

A Full Service Marketing Agency & Consultancy Dedicated To The Success Of Recovery Centers

They offer Marketing and Consulting Services to Drug Rehab Centers. Digital marketing includes: SEO, Paid Search, Display, Blog Management, Marketing Content, Website Creation, and Optimizing Websites

Consulting Services include: Opening a Rehab Center, License Acquisition, Training, Grant Writing, and Due Diligence

The revenues for 2021 were 621K with 344K in Earnings which is a 52% profit margin. They have to sell for personal reasons so while the company is growing quickly again, the sales price has been lowered to 790K which means that the sales price is now just 2.29 times the earnings which is very low for a fast-growing, high-margin business that can be home based with no capitalization requirements. This business did 2.1M in revenue with 678K in profits in 2018, which is where it is heading again after a terrible 2020 because of the loss of trade shows which they are no longer dependent on. In fact, the business is better positioned now with a lower cost and more diversified source of revenues than before COVID. Plus, in 2020 there was a temporary shut down of treatment centers due to COVID-19. Now that the addiction rate is at record levels and the Government is paying attention to this, it looks like this will be a fast growth industry for the foreseeable future. The business has accurate financials that have been professionally compiled and uses QuickBooks.

They have created a model that contains dialed in, industry specific marketing and consulting packages that a new owner can easily learn during the transition with the owners. Their model helps new and existing drug rehabilitation centers open, market, and increase revenue of their treatment programs, attract the right patients, and build and execute a marketing strategy for long-term success.

Their sales process does not involve any outbound calls or door knocking. Instead, potential clients find the Agency through its websites, which rank in the top 3 positions in Google.com for every relevant term for addiction marketing and addiction consulting.

The Agency has two revenue streams: marketing and consulting. For marketing, the Agency sets up and manages marketing for addiction treatment centers in 3 main ways: SEO, paid search (AdWords), and display retargeting. While one owner does most of the strategy (which is teachable), trusted vendor partners perform the actual marketing work. The marketing objective is typically building a treatment center’s online presence, which may include a website audit/update, search engine optimization (SEO), and setting up and managing digital marketing on an ongoing basis. SEO, Paid Search, and display advertising create recurring monthly revenues.

The consulting side of the business primarily focuses on people who seek to open a new treatment facility. All consulting services are performed by contracted industry experts allowing new ownership to easily transition into the consulting business. Consultants guide clients through the process from the start to the day the center opens. Other consulting services offered include: Feasibility Study, Pro-Forma, state licensure, staffing, program development, curriculum development, national accreditation, and grant writing. Consulting contracts are billed out monthly to provide high, consistent MRR.

The owners spent 2019 and 2020 restructuring the Agency's marketing products and developing the website to generate inbound leads for the consulting side of the business. The business was down, as was the industry, in 2020 due to COVID shutting down addiction treatment centers. This created challenges for the business that are visible in 2020 numbers, but it has been a very temporary negative impact on the business. The Agency is growing again, especially the consultancy side due to an industry influx of VC and federal funding for opening treatment centers. Owners have focused on growing the consulting side of the business, making it recession-proof and less susceptible than marketing to the negative impact that Covid has had on this industry. In fact, the business is growing quickly again now with better margins than any other time in the last 3 years. The consulting side is easier and less expensive to market and the work is performed by contractors, making it relatively hands-off. In hindsight, although Covid destroyed earnings for over a year, it helped the owners to find a more secure direction for this company.

The owners have increased the business’s resilience to COVID and rebounded from 2020 with a stronger 2021. The owners think a new owner should have some sales experience, but they can teach the rest. The Sellers are confident that they can show the new owner how to continue to grow this business in a significant and predictable way. The business has grown via inbound marketing and will continue to benefit from the powerful lead generation of the website. The website ranks in the top search terms in both marketing and how to start a rehab center. This has generated significant business, and the lack of current outbound marketing creates an opportunity for a new owner to substantially grow the business.

The price was recently lowered 790K from 875K regardless of the higher earnings. This company is worth more than 790K for several reasons: Their marketing product offering is proven to work. Their marketing and consulting website is ranked number one, providing lucrative consulting MRR. They have one of the biggest profit margins I have ever seen and are on a steep upward trajectory. They are convinced the new owner will be able to retain and attract clients in the future, and although COVID hurt them badly last year, COVID will also help this company in 2021 and beyond because addiction rates and funding to treat addiction are increasing as a result of COVID.

It is rare to see a company that has had 2.1M in revenues, chose to restructure their business model after a slow period, added the consulting line of revenue, and is now growing again back toward their old numbers. They have had more than one client pay them over 150K/month in the past. This business should be worth a lot more money by 2023. This company has one of the best equity growth potentials with minimal capitalization I have ever seen. This business has a profit margin of 52% since their restructuring. The owners state that it will be very easy to grow it, creating significant future value for the new owner.

This company is well established with a great reputation in the industry. They help their clients with not only opening new centers or adding new lines of revenue for existing centers through consulting but also with increasing lead generation through SEO, paid search and display advertising. Consulting acts as a lead funnel into marketing, with both marketing and consulting generating recurring monthly income. This is the growth opportunity for a new owner as the recently added a third consultant which opens up more availability to take on new and larger projects.

They have 2 consultants who are experts in the addiction industry with a third currently onboarding. They are able to provide multiple consulting services to new and existing treatment centers. They could also help new owners develop digital consulting products for a passive income source.

The perfect time to buy this company is right now. COVID has led to record rates of addiction and an increase in treatment funding opportunities. The Sellers have developed addiction marketing packages and consultancy services based on years of experience in the industry that can be distilled and taught to new owners quickly.

Their team is made up of the 2 owners and 2, soon to be 3, consultants (who are subs and not employees). This company was started in 2014 by the current owners. One owner works 25 hours/week and is in charge of the digital/online marketing and closes all sales. The other owner works 10 hours/week and does operations, invoicing and bookkeeping for the firm. The combined hours of both owners is 35 hours/week. No professional license is required for this business. If the business gets back over 2M in revenues, it is the owners' opinion that the new owner might want to hire an account manager to help to maintain customers long term. One of the owners will consider helping long term up to 20 hours a week to help with sales for a commission. This is a individual decision between the one owner and each potential Buyer.

There are a lot of special things about this company but nothing more important than their profit margin of 52%, current growth, their multifaceted and symbiotic revenue streams, and a model that is easy to learn and manage. This company can grow back to 2M dollars or more in revenue fairly quickly.

Sincerely,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

This is prepared by Business Broker Colorado with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Growth & Expansion

This company is well established with a great reputation in the industry. They help their clients with not only opening new centers or adding new lines of revenue for existing centers through consulting but also with increasing lead generation through SEO, paid search and display advertising. Consulting acts as a lead funnel into marketing, with both marketing and consulting generating recurring monthly income. This is the growth opportunity for a new owner as the recently added a third consultant which opens up more availability to take on new and larger projects.

Market Competition:

They have created a model that contains dialed in, industry specific marketing and consulting packages that a new owner can easily learn during the transition with the owners. Their model helps new and existing drug rehabilitation centers open, market, and increase revenue of their treatment programs, attract the right patients, and build and execute a marketing strategy for long-term success.

Location Details:

The owners work out of their home.

Support & Training

Will support as long as needed.

Reason for Selling:

Personal and health reasons.

Listing ID: 31915

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