Medical businesses are very popular with buyers these days, the media and general word on the street tells buyers that the medical industry is the industry to be in.
Buyers are interested in any business that is medical related and buyers are even more interested if the medical business does not require the owner to be a doctor or have a medical degree. Examples of Medical businesses where no formal degree or doctorate is necessary to own include medical equipment businesses, Magnetic Resonance Imaging (MRI) businesses, medical testing businesses, nurse staffing businesses, home care businesses, disability assistance businesses, urgent care clinics, medical scooter businesses, Assisted Living Facilities, Hearing Aid businesses, medical transport businesses, medical rentals, medical supply manufacturing and distribution and many more.
All of them resonate with buyers who are looking for medical businesses, but sellers will still need to address a buyer’s requirements for purchase.
These requirements will include the financials of the corporation, a decent location, qualified employees and their willingness to stay with the new owner especially if the business requires someone in their trade to operate, the type of owner experience necessary, the regulations they must follow, the type of insurances needed and what the owner’s day to day role in the operation will be.
One primary concern for buyers and sellers will be obtaining financing because some banks will require prior experience from a buyer before they grant them financing even if that additional experience is not necessary to own the business. The banks want to feel secure about who they are financing.
Medical businesses where the primary business stems from doctor/ patient consultations and sessions are also in demand. These businesses include businesses such as dental offices, orthodontist practices, eye doctors, general practitioner practices, physical therapist offices, chiropractic offices, and surgical practices.
These businesses don’t always sell for the highest multiples if they are smaller operations, but current doctors and professionals seek out practicing offices to buy when they are relocating to other areas or adding on to their existing practice. Buyers will valuate these businesses for sale based on the financials, locations, list of clients, and they will many times require extended training and transitioning time from the current owner in order to make the deal work.
This is especially important if the patients are consistent and ongoing because they will want to feel more at ease with the new owner of the business. This means that these transitions really require that the buyer and seller can get along and maintain a good working relationship.
Lee Ossin is a Licensed Broker Associate and owner of Crowne Atlantic Properties, LLC. Mr. Ossin specializes in the sale of landscape businesses, beauty salons, asset sales, medical businesses, restaurants, and manufacturing companies, as well as business sales dealing in Foreign Visas and SBA loans. He is also a member of the Business Brokers of Florida and the Orlando Regional Realtors Association.