“How long will it take to sell my business?” is one of the first questions healthcare owners ask. The honest answer is that it depends on the type of business, how well it is prepared and the licensing steps involved. Healthcare sales often take longer than sales of other small businesses because buyers need more information and new owners usually need regulatory approval before they can take over.
Healthcare business broker Dahlia Black walks through each stage of selling a Florida healthcare business, what happens in each one and what owners can do to keep the process moving.
Before going to market, the business needs a realistic valuation and organized records. This stage includes gathering financial statements and tax returns, adjusting earnings for owner expenses, and reviewing licenses, inspection history, staffing, payer contracts and the real estate or lease.
Owners who have already organized their records can move through this stage quickly. Owners who need to clean up financials or resolve compliance issues may need more time, and that time is well spent because it usually improves the outcome. Read about exit planning for Florida healthcare businesses.
Once the business is ready, it is marketed confidentially to qualified buyers. Healthcare businesses usually require more careful screening, because buyers must have the experience and financial capacity to operate the business and qualify for licensure. Buyers sign confidentiality agreements before receiving detailed information, protecting staff, residents, patients and referral relationships.
Interested buyers review the business, ask questions and often meet the owner or visit the facility. Serious buyers then submit a letter of intent with price and key terms. Negotiating structure, including whether it is an asset sale or stock sale, real estate terms and any transition period, happens here.
After a letter of intent is signed, the buyer verifies the financials, operations and compliance of the business. For healthcare businesses this often includes billing and payer records, licensing and survey history, staffing and credentials, policies and procedures, and contracts. Good preparation in Stage 1 shortens this stage considerably. See our guide to preparing for due diligence.
This is the stage that most often sets healthcare sales apart. Many Florida healthcare providers, including assisted living facilities and home health agencies, require the buyer to obtain approval through a change of ownership application, and the application generally must be filed well before the planned closing date. Medicare and Medicaid enrollment steps may run in parallel. Learn how the process works in our article on change of ownership when selling a Florida healthcare business.
At closing, ownership transfers and the new owner takes over operations. Many sellers stay on for a transition period to introduce the buyer to staff, referral sources and key relationships, which helps protect continuity of care and the value the buyer paid for.
The owners who are happiest with their sale are usually the ones who started planning early. Even if you do not plan to sell for several years, understanding what your business is worth today and what buyers will look for gives you time to make improvements that increase value. A good first step is our business valuation calculator, followed by a confidential conversation with Dahlia. You can also read the complete guide to selling an assisted living facility in Florida.
Dahlia Black is a healthcare business broker and licensed real estate associate with Truforte Business Group and the owner of Senior Care Advisory Group. With 25 years in senior care, including hands-on experience managing and developing assisted living facilities, she helps Florida owners of assisted living facilities, home health agencies, medical practices and other healthcare businesses value, prepare and confidentially sell their businesses. Call 239-284-1317 to speak with Dahlia.