Synergy Business Brokers has answers to your questions. We have been selling software companies for over 20 years and have sold multiple EHR Software Companies.
We’ll answer all of your questions, such as: How long does it take to sell an EMR software company? How do you determine a potential selling price for an EHR SaaS company? What types of buyers do you have for an EHR software company?
We’ll provide some of the answers to the fundamental questions now and can be more specific once we speak with you. On average, it takes 5-10 months to sell an EHR Software Company. Pricing the business involves reviewing your financial information, examining trends, profitability, and recurring revenue, and also finding out the details of your business.
The types of buyers we have for an EHR software company include Private equity firms, Public and Private Technology companies, and wealthy tech entrepreneurs. They are looking for top EHR vendors in a given niche with long-term customers. The best buyer is usually someone who can leverage your EHR system, customers, and practice managers to grow the firm after an acquisition.
We understand that as an owner of an EHR Software Company, you have had to comply with many regulations, including the Merit-Based Incentive Payment System (MIPS) and Meaningful Use and all the different stages of compliance. You had to make a significant investment in software development to meet the requirement of meaningful use to comply with Medicare and Medicaid. Some of the EHR Software companies couldn’t keep up with the investments, so if your company has made it to this point, you would need to have enough customer retention to fund the software developments.
Potential buyers look for companies with high customer retention and recurring revenue. Of course, they are also interested in profitable companies, but we can sell EHR software companies that may not be profitable as long as their revenue is between $700,000 and $70 Million.
1. Sigmund Software: The owner was of retirement age and had developed an EMR software solution for Mental & Behavioral Health Companies. He had about 60 customers and had a comprehensive solution for the niche that the company services. This allowed them to provide better solutions than more generic EHR Software Companies. The owner previously hired an M&A firm that charged an upfront fee, and unfortunately, they were unable to get him any offers. Once we had the assignment, we had about 70 potential buyers who signed Non-Disclosure Agreements, and 4 of the buyers made offers for the company. With leverage from multiple offers, we were able to get the full asking price for the business. The winning bidder was a Canadian Technology company that wanted to diversify into Health Care Software.
2. Life Systems Software: They develop EHR and EMR software primarily for Chiropractors. As with the previous EHR software company that we sold, the fact that they have a niche market allows them to have customized solutions that are superior to general EHR software for the chiropractic niche. The owner had built up a successful business since 1992 and was now ready to retire. We developed a marketing plan to protect their confidentiality during the sale and contacted many potential buyers with whom we have relationships who are interested in buying successful software companies. We negotiated terms that worked for both buyer and seller through having multiple interested parties. The buyer was an experienced software executive.
We have the right experience and contacts to match those who want to buy an EHR company with business owners who want to sell their EMR software business. It is all about getting the right fit and helping you through the EHR M&A Process with advisory services, from finding the right buyer to negotiating offers, due diligence, and successful closing.
Many of our senior business brokers have worked in the software and IT services industry before handling software company sales. Our experience lets us understand the software industry and position your company to attract the right tech buyers who will provide the best offers. It is a collaborative process because, of course, you understand more about your business than anyone, and we are experts in the process of selling tech companies, so combining your knowledge and our experience leads to the best results.
Please fill out our online form to provide us with some information on your EHR software company, and we’ll have one of our Senior Advisors follow up to discuss how we can help to sell your EHR software company.