Recently we talked about how the urgent care industry is one of the fastest-growing segments in the U.S. healthcare system and how the opportunities that the urgent care space presents haven’t gone unnoticed – specifically by private equity firms.
While we discussed how investing in urgent care can definitely prove to be profitable for private equity firms, urgent care clinics can also benefit from the relationship.
Private equity firms help urgent care clinics to standardize processes, consolidate overhead costs and find new locations without saturating the market – relieving physicians from tasks that they are typically too busy to tackle.
Time to Sell?
Perhaps motivated by new healthcare reforms, a profession in transition, recent acquisition activity and high valuations many physician owners are either considering or preparing for a sale in order to better compete in this new environment.
If you fall into one of those categories and are considering selling your urgent care organization now or even in the future, you need to prepare your organization to ensure that it’s an attractive target, maximize its sales price and offer a positive sell-side deal experience.
Private equity firms will conduct their own due diligence – looking at your financials, your management team and your marketing strategy, but sellers should also conduct their own detailed due-diligence and prepare and compile all the necessary documents and data that will answer questions unable to be answered in the private equity firms’ initial due diligence.
A Successful Outcome Begins With a Successful Analysis
Through patient data and analytics, you have the ability to show investors a snapshot of your organization that reveals:
- Your organization’s market dynamics – encompassing everything from what the mix of your patients looks like to your scale and expansion potential – nationally, regionally, and by specific market
- How well your organization has positioned itself in the marketplace
- Which services are in high demand
Once you know what your organization’s real value and runway potential is, you’re in a much better negotiating position than someone who doesn’t possess those insights.
And even though private equity firms consider a multitude of factors when deciding which companies make the best investments, one of the main characteristics they look for involves growth potential.
By using both traditional financial analysis and the insights provided by patient analytics, you can come to the table with the ability to demonstrate the true value of your organization to potential buyers.
If you’re interested in selling your urgent care organization, talk to us and let’s make sure you’re taking the right steps for a successful future.