Just a few of the Buyers including Private Equity Groups, Family Office, Mid Level and Wealthy Individuals that are actively seeking acquisitions in the Medical and Health Care Space.

• Medical billing $500k SDE

• Medical outpatient behavioral Healthcare (therapy) clinic Revenues from $500k Plus

• Medical Staffing Agencies for rehabilitative therapies (physical or occupational of speech).  No RN, CNA, or LPN services

• Healthcare Care Home Healthcare Care / Skilled Nursing Home Care $1M - 2.5M EBITDA

• Healthcare; Behavioral Healthcare, Mental Healthcare, Rehab Clinics and Facilities  $500k+ EBITDA 

• Healthcare Care Home Healthcare, Home Care, Hospice, IDD, Home Infusion $800K - $5M EBITDA

• Healthcare care or Business Services $1M  - $2.5 M EBITDA

• Healthcare, Medical product companies that sell Disposable and Consumable products to hospitals, $500k+ EBITDA

• Healthcare Care, Home Healthcare, Hospice, Home Care, Home Infusion, Behavioral Healthcare, Specialty Pharmacy, Pharma Services $750K - $5.0M EBITDA

• Healthcare, Life Sciences, $2MM+ EBITDA

• Healthcare software focused on operations of skilled, unskilled homecare, Skilled Nursing Facilities $500K+ EBITDA

• Healthcare & Pharmaceutical Equipment $2M-10M in SDE seller discretionary earnings

• Healthcare and other service industries Revenue > $5M and EBITDA > $1.5M

• Healthcare/Pharma Services or Human Resources $2M+ - $6M in EBITDA

• Healthcare Nursing, therapies, hospice, palliative care, adult day care, and attendant care services, Specialized on-site services (DME, diagnostic testing, etc.)Patient support services (remote monitoring, transportation, nutrition, etc.) $750k - $4MM EBITDA

• Healthcare or Healthcare Services $500k to $2.5MM EBITDA

• Healthcare Revenue Cycle Management businesses that have Hospitals as customer base, $5mm+ Rev with $750+ EBITDA

• Healthcare Services  $2MM - $15MM EBITDA

• Healthcare services business, Home Healthcare, Hospice, Home Care, Home Infusion, Behavioral Healthcare, Specialty Pharmacy, Pharma Services of $750K - $5M EBITDA

• Healthcare Services, $3 MM EBITDA Rev $15 million

• Healthcare Services, Industrial Service, Transportation/Logistics, Value-added Distribution  $750K - $5.0M EBITDA

• Healthcare services, Industrial services, Business services, Professional services, Technology services between $750K and $2MM EBITDA

• Healthcare Services, Specialty Manufacturing, Business Services,  $3M to $15M of EBITDA

• Healthcare Services, Waste Management Services, Industrial Services, Niche Manufacturing, $500K-$7M of EBITDA

• Healthcare software for (e.g. adult day Healthcare, home delivered meals, medical day care, assisted living, etc.) Healthcare software focused on skilled home care or skilled nursing facilities Home Healthcare aide training services, Nurse training services or related learning management systems, Tech enabled services for skilled or unskilled homecare (e.g., medication management, personal emergency response systems, dementia care, etc.) $500K in EBITDA

• Healthcare Software, Healthcare Training, Tech Services for Skilled or Unskilled Homecare $500k+ EBITDA

• Healthcare, business, and government services, consumer services, professional services, software and internet, manufacturing & distribution $750K - $5M EBITDA

• Healthcare,   $7M-50M EBITDA

• Healthcare Services,  $3M+ EBITDA

• Healthcare, Medical $500K+ EBITDA

• Healthcare, Pediatric Dental, Ambulatory Infusion Services, ecommerce Nutritional Supplements,  $3M+ EBITDA less for add ons. 

• Healthcare, value-added distribution,  e-commerce, sporting goods, adhesives, dental products, Business services, manufacturing,  $750k+ EBITDA 

• Healthcare, value-added distribution, franchisors, internet, e-commerce, Consumer services, manufacturing,  $750k + in EBITDA

• Healthcare Services, Industrial Maintenance & Repair, Value-Added Manufacturing  $1.5MM+ EBITDA

• Healthcare; Home Accessories all types $2m-$5m EBITDA, $10m-$100m rev

• Healthcare; Home Healthcare Care / Hospice $5MM to $10MM EBITDA 

• Healthcare; Home Healthcare & Hospice $750K - $5MM EBITDA

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $750k+ EBITDA

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $1mm+ EBITDA

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $1mm+ EBITDA

• Healthcare; Home Healthcare Care / Hospice $1-3M EBITDA

• Healthcare; Healthcare-Related Clinics and Allied Businesses, including Primary care & Specialty clinics, Mental Healthcare Centers & Clinics, Rehabilitation Clinics & Hospitals,  $10mm + EBITDA

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $1mm EBITDA

• Healthcare; Home Healthcare, Hospice, Home Care, Home Infusion, Behavioral Healthcare, Specialty Pharmacy, Pharma Services, Physician Healthcare; Practice Management $750k+ EBITDA

• Healthcare , Government Services $1.5MM+ EBITDA $10MM+ Revenue

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $1mm EBITDA

• Healthcare: Home Care, Home Healthcare, Hospice, and Med Spas $1-10M of EBITDA

• Healthcare Physician offices and Medical Specialties $500k+ EBITDA

• Healthcare; Home Healthcare Agency, Private Duty Nurse Registry $1mm EBITDA

When Buying or Selling a Medical Practice: EBITDA vs SDE

Which Metric do Buyers use when assessing the Purchase of a Medical Clinic? The answer is that it depends on the size of the Business and the buyer. First let’s define EBITDA, Earnings before Interest, Taxes, Depreciation, and Amortization. The way to Calculate this is to simply add those items from the financial statements. This method assumes a “Passive” (not working in the business) owner and investor for example.

SDE is the acronym for Sellers Discretionary Earnings, AKA Sellers Discretionary Cash Flow, Adjusted Net and a few other similar sounding names. This Metric includes all of the EBITDA items listed above but also Assumes a Full-Time working owner and includes the Sellers Discretionary Expense “add backs”. Examples might be Travel that is not necessary for the business, a company car, a retirement plan for the owner of the business just to name a few.

An individual Doctor looking to buy a Medical Practice to work in and own will be looking at SDE to calculate how much they will make. An example would be an Internal Medicine Practice with $800k in collections and the Full-Time working Doctor owner is making $350k after all the bills are paid. A buyer might pay 1 to 2.5 times (maybe more) of the SDE to purchase that practice.

A Large Group or Hospital looking to buy this same Practice will be a somewhat passive investor and will include a Doctors Salary of $200k in the expenses. They will also add general and administrative cost and where the SDE was $350k in this example, the EBITDA is now around $100k for the same Business. With the owner Doctor leaving, they will also want the seller to “earn out” of the business for the risk that the patients don’t like the new Doctor they place in the Practice. This means that if the Collections decrease after the sale, the seller receives less money for the business. The large group may pay 2 to 3 times (could be more for a Business that has $1mm+ in EBITDA) the EBITDA but the higher Multiple is on a much smaller Number. 3 Times EBITDA of $100k in this example equals $300k price where 1.5 times SDE of $350k equals a price of $525k.

Keep in mind this is the Same Business, Same Numbers, just a different point of view from different types of buyers. Your Business has a different value to different types of buyers.

The Bottom line is that you need to find the best buyer to get the best price for your Business when it is time to sell. If you are thinking about selling your Medical Practice and are not happy with the offers you have received from large group buyers, call Vince LoCricchio BCI at 813 690-0109 for a free confidential consultation about buying or selling a Medical Practice or email Vince@EnterpriseBrokers.com Member International Business Brokers Association and Business Brokers of Florida.