Selling a Mental & Behavioral Health Facility

How to Sell a Mental and Behavioral Health Company

If you want to sell your mental and behavioral health facility, you probably have a few questions about how to get started, including:

  • How do I price my mental and behavioral health facility?
  • How do I sell it while maintaining confidentiality?
  • How do I find the right buyer for my practice?

At Synergy Business Brokers, we have been selling businesses in the healthcare industry for more than 20 years, and we specifically have experience selling mental and behavioral health businesses. Whether you are looking to sell a mental health facility, behavioral health facility, psychology practice, or alcohol or substance abuse facility, we can guide you through every step of the process of selling your practice.

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1. Partner With a Healthcare Business Broker

Selling a behavioral health business involves several steps that can be overwhelming unless you have experienced health practice brokers on your side. Your first step is reaching out to us at Synergy Business Brokers for a free, confidential consultation. We’ll ask questions about your business, such as:

  • What type of patients utilize your service?
  • What geographical area do you serve?
  • What is your unique approach?
  • What type of skills do your doctors and other employees have?

We’ll use this information to form a plan for how to proceed with the sale of your business.

2. Value Your Business

Next, we’ll review your practice’s financial information to look at trends and determine what your net income is. This will allow us to provide you with a potential selling price. To value your company, we will consider the following factors:

  • Your revenue
  • Your earning potential
  • Your practice’s efficiency
  • Your reputation in the area
  • Your relationships with patients, staff, and community members

Each of these factors can play an essential role in determining your practice’s value. The value of your mental and behavioral health company can also be influenced by the type of practice you own and the services you offer. We have experience selling the following types of mental and behavioral health facilities:

  • Psychiatric facilities
  • Outpatient counseling
  • Individual psychotherapy
  • Addiction treatment centers
  • Residential or inpatient treatment centers
  • Autism centers
  • Support groups
  • Family Counseling

At Synergy Business Brokers, we can help you select the most appropriate method of valuing your practice. Once your company’s value is calculated, you can determine whether a buyer’s offer is lower or higher than you expected.

3. Sign Our Listing Agreement

If you want to move forward with the selling price, we’ll have you sign a Listing Agreement, which provides for a percentage of your sale price, so we’ll establish the same goal of maximizing your sale price. We will only receive payment when we successfully sell your mental and behavioral health practice.

We have two listing agreements — one for practices that have less than $600,000 of net income and the other for practices with more than $600,000 of net income. We will request that you sign the agreement that is appropriate for your practice.

4. Market Your Practice While Maintaining Confidentiality

We develop a package to market your practice. Our mission is to give enough information to garner interest but not so much that someone could identify you or your practice. So we’ll provide general information in order to generate a lot of potential buyers. We’ll develop a profile of the company that maintains confidentiality and advertise this profile. Successfully marketing your practice means we’ll appeal to as many potential buyers as possible to create competition and leverage multiple offers. This is designed to raise the value of your mental and behavioral health practice. Interested buyers will need to sign our confidentiality agreement and provide us with their qualifications before giving them the identity and details of your business.

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5. Identify Potential Buyers

You will also want to get a buyer that you feel comfortable taking over your business. We will contact our database of more than 40,000 potential buyers to see which buyers are the most qualified and interested. The types of potential buyers for your behavioral and mental health facility include:

  • Similar facilities that want to expand through acquisition
  • Private equity firms that are buying and merging several of these facilities
  • Wealthy individuals with experience in this area

We have contacts with all of these types of buyers, and we’ll work hard to see who the best buyers are before we introduce them to you. The type of buyer might also vary depending on the type of services you provide, such as whether you focus on one or more of the following:

Also, some buyers are looking for facilities that focus on in-network insurance reimbursements or those that cater more toward private payment individuals. Whatever type of practice you have, we have potential buyers who are interested in a variety of mental healthcare businesses.

6. Negotiate the Offer

An initial meeting with the buyer is a chance for both parties to see if there might be a good fit. If so, then the next step would usually be an offer letter, which would outline the price and structure of the deal. In most cases, we can get multiple offers that allow us to negotiate the best price and terms.

Along with the price and terms, we will also discuss with the potential buyers the due diligence the buyer will be performing, the length of a transition period they prefer, and how they plan to run the practice. We have reviewed hundreds of offer letters, which means we know how to decipher the various pros and cons.

7. Close the Deal

Once an offer for your practice is agreed to, then there is a due diligence phase to verify the financial information and other details about the business. The due diligence period typically lasts between 60 to 90 days. And the process of transferring and applying for a license will be started along with a purchase and sale agreement that will need to be finalized. We will work with you every step of the way to keep the deal moving forward and on track.

Synergy Business Brokers Is the Healthcare Business Broker That Can Help

At Synergy Business Brokers, we have potential buyers located throughout the U.S., including NY, IL, FL, CT, AZ, CA, HI, LA, MA, NJ, TX, PA, and much more. We also sell psychology practices and occupational therapy practices. We sell healthcare businesses that have annual revenues of $700,000 to $70 million, so if your business falls within that range, we would love to speak with you to let you know how we can sell your company.

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Are You Considering Selling Your Business?

Our team has plenty of experience selling mental and behavioral health practices and medical businesses. We have a vast network of potential buyers to draw on, and you won’t pay anything until we sell your business. Start right now by filling out the form on this page or submit our registration form to get started with us at Synergy Business Brokers. We look forward to speaking with you.

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