THREE REASONS TO WORK WITH A HEALTHCARE M&A ADVISOR
Partnering with a healthcare M&A advisor when selling your business has numerous advantages.
Selling is a complex process with many potential pitfalls, so having an expert advisory team is essential.
At Agenda Health, we offer access to advanced valuation models, a pre-qualified pool of potential buyers, and negotiation expertise.
All of which ensure a smooth and successful sale.
Let’s dive a little deeper.
VALUATIONS & MULTIPLES
As a business owner, you have invested blood, sweat, and tears in making your company work. When it comes time to sell, you want to ensure you receive fair market value. Valuations are the first step in this process.
Valuations involve a comprehensive analysis of your company’s financial health and determine its fair value. Our team will work with you to analyze financial statements, market trends, and potential synergies to create a detailed picture of your company’s worth.
A proper valuation helps you understand your company’s value and provides a solid basis for negotiating with potential buyers.
One common way to express the value of a company is through a multiple of earnings.
For example, a business with $2 million in earnings and a multiple of 6x would have a value of $12 million.
However, it’s important to note that multiples aren’t one-size-fits-all.
Multiples can vary depending on factors such as the type of healthcare business, geography, growth potential, and profitability.
Therefore, it’s crucial to partner with a team that monitors these metrics daily to ensure each aspect of your business’s context is considered when determining its value.
Once you clearly understand the value of your healthcare business, our team can help you determine the next steps.
What to Do if Your Valuation Falls Short
If your valuation falls short, don’t panic.
Use it as a starting point to make the necessary changes to increase your company’s value. Reduce costs, increase revenue, or expand into new markets.
A low valuation doesn’t necessarily mean you should abandon your plans for a merger or acquisition.
AVOIDING 1:1 BUYING SCENARIOS
The Unsolicited Call
If you’ve owned your business long enough, you’ve received an unsolicited call or email from someone requesting to make an offer on your business. An unsolicited call or email from a potential buyer can be flattering (or annoying), but it’s important to approach these offers cautiously.
1:1 Buyer Scenarios
Consequently, engaging in a 1:1 buyer scenario means you’re negotiating with only one potential buyer, and this approach can be problematic since it removes your leverage and bargaining power. It can also create an environment where the buyer can drive down the value of your business.
Competitive Listing Process
The ultimate aim is to generate a competitive atmosphere among buyers. By widening the pool of potential buyers, you increase your leverage and create a more competitive environment.
Our team will give you access to multiple qualified potential buyers. We’ve done the work upfront to know that your business is aligned with their acquisition criteria.
Every successful close is the end of a long and friendly fight to find win-win scenarios for all parties.
Discussions about deals can be complicated. An experienced advisor is necessary to guide you through them.
Our team will guide you through the negotiations and help you reach a mutually beneficial agreement.
These negotiations may involve adjusting the purchase price, changing the agreement terms, or negotiating other essential terms for both parties.
Selling your healthcare business is a complex process requiring expertise and experience.
Working with our healthcare M&A advisory team can provide you with the necessary tools to ensure a successful sale.
With a proper valuation, you can confidently set a price that will set you up for success in a competitive listing process.
Our team will help you negotiate the best terms and conditions, ensuring a smooth and successful transaction for all parties involved.
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