Investors interested in purchasing an ambulance business for sale, or in merging ambulance companies understand that there are great advantages to purchasing an ambulance business that is well established in a community, including brand advantage, existing vendor relationships, financing advantages and an ability to work more effectively to accomplish strategic tasks more quickly – without being bogged down by the administrative tasks related to starting a new business.
Below are five tips that investors should know when buying an established ambulance business:
1. Buying a Job and a Lifestyle. Investors that plan to be actively involved in the running of their new ambulance transport business need to be sure they will enjoy the line of work and the daily activities. Buyers are advised to ask questions of current owners, to shadow them when possible and to learn as much as possible about the schedule in order to determine if the job will work with their present and future lifestyle.
2. Getting Monetary Ducks in a Row. When embarking on such a significant investment, buyers are urged to be deliberate at every step by obtaining ambulance business valuations in order to be certain of the true value of the business; considering multiple venues for securing capital; and ensuring credit and down payment are sufficient before moving forward with negotiations.
3. Consider Seller Financing. A recent article by Microsoft warns that financial institutions do not always provide debt financing options for purchasing an existing business. Many investors will need to consider seller financing. Down payments generally range from 20 to 30%. A low down payment may indicate that the seller has faith that the business is strong enough to generate the remainder.
4. Customer Retention. Buyers should ensure that all contracts and agreements already in place with clients and vendors are transferable to new owners. Purchasing a business without its existing client base would eliminate much of the benefit of purchasing an established ambulance business for sale.
5. Status Quo. If the business that is being purchased is already profitable, buyers should purchase the business without the intention of changing anything right away. Investors are advised to learn to manage the business as it is before making significant changes to its structure so as not to alienate existing clients or employees, and to take time to analyze the strengths and weaknesses of the business in action.