You’ve learned why now’s a great time to sell, with buyers paying 7x-10x EBITDA in numerous specialty physician verticals. But timing your exit 3-5 years before you stop chairside work or retire can unlock even more value—here’s why.
Private equity wants leaders in place during transitions. During my time as a buyer, I closed over 125 partnerships worth $70M+ of total EBITDA. Doctors who sold 3-5 years early, staying on to ensure stability, often secured 1.5-3.0x higher multiples than those who waited until the last year. Why? Buyers avoid practices without active leaders—they’d rather not recruit a replacement, and often can’t, at least quickly. Waiting until you’re 1-2 years out, or ready to leave immediately, can lead to offers 15-25% below market, as buyers factor in the cost and risk of finding a new provider. Or worst case, buyers have no interest at all. They run as fast and far away as they can!
Selling early lets you maximize your practice’s value while you’re still engaged, ensuring a smoother handover. Don’t leave money on the table. Reply for a free valuation—I’ll help you map out a strategic exit timeline.
Exit Tip of the Day: Start grooming a successor now. A ready leader can add 10-20% to your valuation by ensuring a seamless transition.
Cheers!
Jordan Barrett
Founder | Healthcare Transaction Professionals
Healthcare & Real Estate Transaction Services
(214) 888-6560 | jordan@healthcaretxprofessionals.com
www.healthcaretxprofessionals.com
