How to Sell a Healthcare Business
Healthcare is one of the fastest-growing industries, with demand for healthcare professionals expected to increase by 16% over the next 10 years. If you own a healthcare business, whether it's a private physician's practice or a medical billing company, selling it might be the best way for you to make the most of the demand. You might also want to sell your healthcare business because you're planning on retiring soon or you're ready to explore another industry.
Finding a business broker with experience in the healthcare industry is the first step to take if you're getting ready to sell. Healthcare business brokers understand the intricacies of this field, including regulations and insurance intricacies. Synergy Business Brokers works with healthcare companies across the US with annual revenues between $1 million and $70 million. If you're getting ready to sell, contact us today, and we'll help you get started.
Business Brokers With Healthcare Experience
Healthcare is a wide-ranging industry, covering medical practices, pharmaceutical companies, senior care, and behavioral and mental health practices. Synergy Business Brokers has worked with companies in all corners of the healthcare industry, helping business owners get the best offer possible for their companies and ensuring the sale process goes smoothly.
For example, our brokers worked with the physician at Maverick County Medical to help him sell his successful practice. The doctor had worked hard for years to build his practice with a large staff and was approaching retirement. He wanted to find a buyer who would take care of his staff and patients after he retired and who would be there through the transition. After he approached Synergy Business Brokers, we received multiple offers from potential buyers.
The physician ultimately decided to sell to a public company specializing in data-driven care. He received the full asking price within seven months of his call to us.
Our experience extends to homecare businesses, as well. One owner had been in business for 25 years and had two locations. She contacted us to help her sell. After meeting with several potential buyers, she received the best offer from a buyer who thought the company had good growth prospects. Since that buyer didn't have the funds to pay upfront for the homecare business, we connected him to banking contacts for the appropriate financing to complete the sale so that the seller could get paid at the closing.
The owner of MJ Transportation had a successful non-emergency medical transportation company. He was looking to move to another state and wanted to sell. His company helps patients get to their doctor appointments and home again. Working with us, the owner found a buyer and negotiated a sale that worked for both.
The above are just a few examples of the healthcare companies we've helped. Read our case studies to learn more about how we've worked with healthcare business owners in the following areas:
- Mental and Behavioral
- Senior Care
- Healthcare Tech
- Medical Billing
- Medical Supply
Selling Your Healthcare Business
Before you sell your healthcare company, you might be concerned about getting the best possible price for it. If the business is patient-facing, you also want to make the transition as seamless as possible for patients. The following steps can make your business's sale go as smoothly as possible.
Valuing Your Business
Before you can sell your medical practice or healthcare company, you need to know its value or worth. Knowing your business' value allows you to decide if a buyer's offer is reasonable, too low, or higher than expected. You can calculate your business's value by calculating its assets' worth, looking at the recent sales prices of similar companies, or analyzing its earning potential.
A healthcare business broker can help you choose the most appropriate valuation method for your company. A broker can also recommend a valuation to you based on its analysis.
Potential buyers will want to see your company's financial details before making an offer or finalizing the sale. Every month or quarter, prepare financial statements that show how much money is coming into your company and how much is flowing out.
The more transparent the statements are, the better. A buyer should be able to glance at them to get a sense of how much your business earns monthly or quarterly compared to how much it spends.
Buyers will also want documents that also provide information about your customers or patients. For privacy reasons, you don't want to disclose too much about patients, but a potential buyer should have a good idea about the number of people seen by your practice and how frequently it sees patients. If you accept insurance, provide clear documentation that illustrates how many patients use insurance or self-pay.
Finding the Right Healthcare Business Broker
You don't have to work alone when selling your healthcare company. The right healthcare broker can streamline the process and help you get the best price possible for the business. Some features to look for in a business broker include:
- Industry knowledge and experience.
- Connections to potential buyers.
- Links to financing options for buyers.
- Sales tips.
- Valuation assistance.
Mergers and Acquisitions in the Healthcare Industry
Instead of selling your company outright, another option might be to merge with another business in the healthcare industry. Mergers and acquisitions (M&A) in healthcare can help improve the patient experience and increase innovation. For example, if a primary care provider merges with a dermatologist's practice, their respective patients can go to the same practice for both preventative care and skincare services.
In some cases, smaller hospitals merge with or get acquired by larger ones, increasing the size of their resource pool and allowing them to provide better care to patients. A hospital might also acquire an electronic health records company to streamline its electronic medical records or a medical transportation company to offer transportation to patients.
The most common form of M&A in the healthcare industry is when a larger company acquires a smaller company in the same sector that might provide services to a different geography or different group of patients. This allows for a simpler transition when the merger is complete while growing the company profitably.
Synergy Business Brokers can help you decide if M&A is the right step to take for your company.
Contact Synergy Business Brokers to Sell Your Healthcare Business
Synergy Business Brokers has been named one of the top five business brokers in the U.S by the Chamber of Commerce, thanks to our success in selling companies. We've also had numerous five-star reviews from clients who were thrilled with the results they got after working with us.
Whether you're just starting to think about selling your business or are ready to sell today, we can help you through every step of the process. Our experience in the healthcare industry means you can feel confident that we'll give you the most accurate valuation and connect you to qualified buyers who are ready to make a purchase. Set up a free consultation today.