The Ancillary Is Like An “EBITDA ATM.”

The revenue generated by the ancillary is almost 100% EBITDA. As a result, the longer you can execute the ancillary prior to sale, the greater your EBITDA and the more you will get for your practice.

Minimum Of 3 Months.

You have to execute the ancillary in your office for a minimum of 3 months in order to be sold. You have to prove that your office can efficiently execute the ancillary.

For Those Practices That Can Execute The Ancillary For 12 Months, You Can Increase The Value Of Your

The buyers are interested in ancillaries that will increase practice revenue by a minimum of $30,000 per month and one for which medical necessity can be established for a high percentage of patients. At $30,000 a month, that is an increase in valuation of the practice by $240,000 (x8) to $360,000 a month (x12). Over 12 months, that is an increase valuation of between 2.880 million and 4.320 million. This increase in valuation is just from the addition of the ancillary and does not even include the value of the existing practice to which the 8-2x EBITDA valuation will also be applied.

Why Ancillaries?

The new buyer will incorporate additional ancillary based revenue into the practice. These are “ancillary based buyers” who have their post sale “plan of attack” already created. If your practice has the requisite patient base and you can show that the practice, can execute an ancillary, the buyers are interested.

All Ancillaries Are Incorporated Into The Practice With No Money Down As There Is Never An Out Of Pocket Expense.

HPS Will Review All Ancillaries But If They Believe That Your Practice Structure May Work, They Will Promote Their Own Proven Ancillary.

All ancillaries will be reviewed. The buyers, however, obviously have their own ancillary in mind that is painless, non-invasive and has enjoyed very high and stable reimbursements for the past 15 years. The ancillary involves preventative medicine. Speak to HPS and, if they believe that your practice structure would work, you can review the ancillary to determine if it is a fit. As stated, if you have an ancillary that you believe will work, please share that information with HPS for their review.

What If I Do Not Want To Sell My Practice?

If you do not want to sell your practice, enroll anyway to generate an additional $30,000 a month in revenue. HPS just prepares your practice profile for review and would not place your profile on their platform until you authorize placement. You can remain a “completed product on a shelf” for as long as you like but when you are ready to sell, it can happen quickly. HPS will ask for permission to anonymously share the metrics of your practice when buyers inquire about certain practices (which happens often) but you can just say no. You control the timing of the sale of your practice.