If you’re considering selling your healthcare business to exit or retire, the experts at Business Brokers Plus are here to help guide you through the process.
You’ve put a lot of time, effort, and sweat equity into growing your healthcare business but operating a successful healthcare business is quite different than selling one.
A wide variety of businesses fall under the Healthcare umbrella and the team at Business Brokers Plus speaks with healthcare business buyers regularly. They are looking to purchase a variety of healthcare businesses including: medical practices, homecare agencies, physical therapy practices, nursing homes, adult day care centers, medical labs, MRI centers, imaging centers, pharmacies, mental health and counseling practices, medical transportation services, medical supply manufacturers, healthcare equipment distributors, healthcare services and facilities, just to name a few.
The seller’s objective is to get the maximum value and secure the highest purchase price and if you’re unfamiliar with the selling process it could be difficult. To ensure that you’re well prepared, it’s never too soon to be thinking about the following:
Valuation: What is my healthcare business worth? What is a realistic sale price?
The more profitable your business, the easier it usually is to sell, and the more it is worth to a buyer. If you over value your business, it won’t sell. If you value it too low, you leave money on the table.
Some of the factors considered when selling a healthcare business include:
- The business’s gross sales numbers and profit margin.
- How much revenue does the business generate and are sales trending upward or dipping?
- What is the economic climate?
- Is there recurring revenue?
- What’s driving new sales — and is that sustainable?
- How reliant is the business on the owner? What systems and processes are in place?
Part of the valuation process also involves looking at the historical sales of similar healthcare businesses, what’s currently available on the market, and comparing your business to those. It is important to research the industry and review similar opportunities. You want to make sure that your healthcare business is priced competitively to attract qualified buyers.
Gather important documents
Having documentation well organized is a great way to keep a buyer’s attention and will result in a smooth and fast transaction.
- Recent 3 year(s) tax returns
- Year end and current YTD Profit & Loss Statement
- Total encounters monthly if applicable.
- Insurance information (2 years of data).
- Billing and outstanding receivables.
How can I sell my healthcare business confidentially?
When you are ready to list your healthcare business for sale, it’s important that all marketing of the sale is confidential so there’s no risk of your customers and staff learning about the pending sale. The team at Business Brokers Plus realizes how important this is and makes sure that all advertising is completely anonymous.
Vetting prospective buyers to ensure they’re qualified (professionally and financially) is very time consuming. Engaging the team at Business Brokers Plus allows you the time necessary to focus on your core business. Only qualified candidates are introduced to you for consideration.
Maintain business as usual.
Growing healthcare businesses are more attractive than businesses with flat or declining revenues.
The experts at Business Brokers Plus are ready to help you sell your healthcare business.
There are no upfront fees. We get paid when you do. Contact us to schedule a conference call 201-745-3976 or a no-obligation meeting today!