We have been immersed in the sale of healthcare space for the past 2/12 years. Healthcare practices are inundated with offers of “we will sell your practice.” Most of what they hear is utter nonsense or is deception. There really is a difference between “Main Street” (where most of us are) and “Wall Street” which is where you want your practice to be positioned in order to achieve a fair multiple at sale. The site www.mainstreettowallstreet.org provides a more in depth overview.
HPS is a platform that has signed over 1,400 buyers interested in acquiring healthcare practices. They also have their own funding for acquisition and are affiliated with a public entity that has the ability to raise unlimited funding for acquisition. Please review the site www.practicesale2025 for additional information on HPS. You would work with HPS if you incorporate this strategy.
We suggest enrolling with HPS if you are interested in selling in 3 months or 5 years. The HPS platform prepares your profile so that it is “deal ready.” It is like a “completed product on a shelf” so you can sell whenever you are ready whether that timing is 3 months or 5 years. Be like a tech company which plans for their exit the day they start their business.
There are a number of buyers who will pay 8-12x EBITDA for Practices that have shown that they can incorporate and execute ancillaries that fit a certain criteria. They want to see that your practice can effectively execute an ancillary program and that the ancillary is reimbursed in your area. If you can do that, then there are buyers waiting to acquire your practice.
Buyers are not interested in a practice whose revenue is overly reliant on physician based, e/m visits. The buyers believe that the reimbursements for e/m visits will be drastically reduced by AI so they want the ancillary based revenue. If you can establish that your practice can effectively operate an ancillary, they are interested. This is not a scenario where HPS will reach out to buyers to ascertain interest. The buyers exist and they have indicated what they are looking for. This is more of an “order filling” type of practice sale.
The buyers will pay a higher multiple for the practice if the ancillary involves preventative medicine. The new administration will stress preventative medicine instead of reactive medicine and buyers want to own a practice that is aligned with the new administration theme moving forward.
HPS will value your practice prior to you beginning and then will track the increase in value of your practice in real time as a result of your incorporating the ancillary. Your practice profile will be prepared when you are ready and your profile will be anonymously placed on the HPS platform to be reviewed by buyers. Offers will appear on your personal dashboard. You control the sale of your practice and are under no obligation to accept offers. As indicated, sell in 3 months or 5 years – it is your choice.
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