When purchasing an ambulance transport business, investors find that there are a great number of advantages to purchasing an established company. They find that they usually gain an established brand, a base group of customers that took years to compile, vendor contracts, highly-trained employees and a facility that customers are familiar with.
A leased or owned premises that is in a desirable area central to the district that your ambulance business will be serving may increase the value of the business during the ambulance business valuation process. When executing the purchase or sale of an ambulance business that resides on leased premises, there are considerations and steps that both buyers and sellers must consider:
1. Assignability and Transfer Rights. An ambulance business buyer is advised to have a Tenney Group professional or an attorney review the lease for the premises in question to determine if the lease is assignable to new business owners, and what steps may need to be taken to get the lease transfer approved by the landlord.
2. Consider Future Location. The new business owner will want to decide if they intend on keeping the business at its present location, or if they feel it would be better located in another space. It is often advisable not to move a business quickly after purchase unless there is an urgent need to do so, especially when buying an ambulance business for the first time. However, when merging companies, investors may wish to consolidate space. If they intend to stay in the space, they need to inform the landlord of their intentions, providing an estimated time frame for their tenancy.
3. Read the Fine Print. When considering whether to remain in the leased location, review the lease to determine who will pay for expenses related to repairs, upkeep, maintenance, remodeling and utilities. This will be an important consideration should the lease need to be renegotiated with the purchase.
4. Term. Ensure that the lease has sufficient time left on its term for a new business owner to take over without having to immediately relocate. If relocation is imminent, it may be worthwhile to wait to make any official transfer or purchase until the transfer has commenced.
5. Renewals. When buying an existing ambulance transport business, the buyer should ensure that there is an option to renew the lease on the premises when the lease term expires. Purchasing a business with a short term lease, or one without an option to renew is ill-advised.