Healthcare M&A FAQs
Answers to Common Questions About Selling, Valuing, and Transitioning Your Healthcare Practice or Business
your questions, answered.
How do i transition my healthcare practice or business?
Transitioning your healthcare practice or business involves preparing your business for sale or partnership, understanding its value, and identifying the right buyer or partner to meet your goals. The process typically includes financial and operations preparation, exploring deal options, and navigating due diligence through closing. The 7 Pillars process is designed to maximize the value you receive while also lessening the burden on you during the transition process.
When is the right time to sell my practice or business?
We recommend thinking early about when you want to begin your next chapter and then consider how far out you are from that timeframe. There is not a one-size-fits-all answer, but there are various factors that contribute to the amount of time it takes to find a buyer.
How long does it take to sell a healthcare business?
The timeline for transitioning a practice or business can vary based on both internal and external factors at play. Factors like buyer readiness, practice preparation, deal structure, and alignment between both parties can all influence how long the process takes from initial planning to closing. There may not be a universal answer for this popular question, but 7 Pillars can offer some guidelines to help you create a plan and shed light on the answer for you.
What is my healthcare practice or business worth?
Understanding the value of your business early can help you plan strategically for the future. Check out this episode of The Advisor’s Table to understand how valuations work and what factors drive them, so you can understand the true picture of your business’s value.
How do I increase the value of my practice before selling?
Our Advisory Program provides early-stage guidance, strategic preparation and actionable insights to help you make informed decisions and achieve the strongest possible outcome. We connect you with our network of trusted partners who support growth with your transition in mind.
What is EBITDA and why does it matter in a sale?
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key financial metric used in healthcare M&A to measure a practice or business’s core operating profitability. It removes financing, tax, and non-cash expenses so buyers and advisors can evaluate true performance and compare healthcare practices on a more standardized basis.
In healthcare business sales and valuations, EBITDA matters because it is the primary driver of practice valuation multiples, buyer analysis, and deal structure discussions, helping determine what your business is worth in a potential sale or transition.
How do I choose the right buyer for my practice or business?
Transitions are more than finding a buyer but rather a partner who will play a meaningful role in your life’s next chapter. We help you identify and evaluate the potential partners that fit you and your practice. For more information, check out Why Joining the Right DSO Matters.
Do I need an M&A advisor to sell my practice?
You’re not required to have an M&A advisor to sell or transition your practice, but working with one can significantly improve your outcome financially and personally. 7 Pillars helps to position your practice, create competitive tension among buyers, and negotiate both price and deal structure. We can be your guide for every step of the process.