Investors considering purchasing an existing ambulance business are certainly getting into a growth business. Statistics and projections indicate that emergency and non-emergency ambulance service use is set to increase, and perhaps double in the coming years as the American aging population continues to grow at an unprecedented rate.
There are a number of benefits to purchasing an ambulance business for sale, as opposed to starting one from the ground up:
1.) Brand Advantage. An existing ambulance business will likely have established a name in the community, with medical facilities and with local government and health providers. Strengthening an existing brand takes significantly less effort than establishing a new brand.
2.) Employee Advantage. When entrepreneurs start their own ambulance businesses, they are limited to accomplishing what one person can accomplish within a day, and this leads to slower growth and limited responsiveness. Purchasing a stable and established ambulance business that is able to support a crew of employees will allow the new owner to be more effective each day, allowing for more rapid growth.
3.) Easier Financing. Because the business model has already been proven to be successful, obtaining financing to purchase such a business will be less difficult, and financing may even be provided on more favorable terms.
4.) Hitting the Ground Running. Many business owners find themselves bogged down with administrative challenges from the first day they purchase a business – such as payroll, equipment purchases, employee management and more. These distractions take them away from their core focus of growing the business. Purchasing an already established business can help eliminate some of the headaches that traditionally accompany the start-up of a new business.
5.) Customer Base. When purchasing an ambulance business for sale or merging ambulance companies, entrepreneurs should ensure that any existing client contracts are transferable and will remain in effect after the transfer of ownership. Most often these will be transferable, and this will provide the investor with an existing client base that took years to build – an obvious and powerful advantage over starting a new business.
6.) Existing Space. When purchasing an existing ambulance business that is being sold, you’ll have the advantage of an establishing space that customers know to come to if they have questions or issues.
7.) Vendor Relationships. Vendor relationships for medical supplies will likely already have been negotiated and in place. This allows a new owner to focus on more pressing matters. Vendor contracts can be renegotiated as needed in the future.