Do want to sell your Healthcare Company for Maximum Value?
We are Orange County Healthcare Business Brokers that specialize in the sale of Healthcare companies including Licensed Home Nursing, Licensed Home Care, Acupuncture, and other healthcare practices.
At Pacific Business Sales we thoroughly understand the process of selling healthcare companies, how to properly value medical and healthcare businesses, licensing, and the process involved in the sale of healthcare and medical companies.
We know how to obtain SBA financing for the sale-purchase of healthcare companies and have a large and diverse pool of buyers interested in healthcare businesses like yours.
What You Can Expect When You Sell Your Healthcare Business With Pacific Business Sales
Confidentiality is of paramount concern to our clients-sellers and we take this very seriously. All of our ads for your healthcare business are general in nature with no specific information that would indicate which business is for sale or precisely where the company is located. Buyers do not receive any confidential information until they have signed a Confidentiality Agreement (NDA) and completed our Buyer Profile which includes information on their financial position, experience, and credit score.
Marketing Your Business
Marketing is one of our strengths at Pacific Business Sales. It’s one thing to have your ad pop up in front of thousands of buyers, but that’s meaningless unless they actually click on it and inquire. We write excellent ad copy and headlines that draw prospective buyers to our ads. Through our experience in selling healthcare companies, we have learned how to successfully advertise these businesses plus built a large buyer database of buyers interested in healthcare companies. We also feature all of our ads so they are at the top of the business for sale websites and not buried with the basic ads.
We also send email blasts to our database of over 3,000 buyers as well as to the BizBuySell buyer database of buyers that have expressed interest in healthcare-related businesses like yours.
Comprehensive Confidential Information Memorandum for your business
We prepare a comprehensive Confidential Information Memorandum (CIM) for every business we represent. The CIM is the prospectus and marketing brochure for your business that the buyer receives after they sign the NDA. The CIM is critical in the buyer’s decision process as this is their first in-depth look at your company. Our CIM includes information about the company, financial statements, staff list (names redacted), equipment list, SBA financing structure, SBA Lender pre-approval letter, and a summary of your services/products.
The first meeting with prospective buyers is with us and is essentially a pre-screening to determine their abilities and frankly how interested and serious they are. After the initial meeting, we schedule a meeting with you, the buyer, and us to discuss the details of the business. Many of the basic questions are answered in our initial meeting, however, buyers often will ask these questions again because they like to hear it straight from the owner. Many of our first buyer-seller meetings are held via Zoom with a second meeting in person for the buyers that want to take the next steps. Of course, the next step after our meetings is to prepare an offer.
Preparing the Offer
All of our Purchase Agreements are prepared on the CABB (California Association of Business Brokers) Asset Purchase Agreement of Stock Purchase Agreement. Our firm has experience in both Asset Sales and Stock Sales (note that an Asset Sale is a transaction type, not to be confused with an asset liquidation – see our page Stock vs Asset Sale). Our experience is that Stock Sales can be critical for you since many healthcare companies sales are Stock Sales in order to preserve the licenses assigned to the corporation, corporate EIN, and most important contracts such as insurance or hospitals tied to the corporate entity. We also have a special Purchase Agreement Amendment specifically for healthcare purchase agreements.
We prepare the offer with the buyer and send it for signature via DocuSign. When the offer has been signed by the buyer we review it with you, explain the details, and prepare a Counter Offer if necessary.
Due Diligence is a very critical step in the transaction process of selling a healthcare business. This is where the rubber meets the road so to speak. During Due Diligence, the buyer and often their CPA will review the company’s tax returns, P&Ls, bank statements, and other records to confirm the revenue and earnings are what is claimed. The buyer will also be reviewing the overall company to ensure it is a well run and stable business. For healthcare business buyers will also be looking at your contracts, customer concentration, and your staff.
We facilitate Due Diligence with both Buyer and Seller assisting in the process and keeping it on track. After Due Diligence is complete and the contingency is removed escrow is opened. See the Steps in Selling My Business below.
We know how to sell healthcare companies! Our experience includes selling licensed nursing, to licensed homecare and acupuncture practices.
We know how to value healthcare businesses, how to handle the transaction with insurance contracts, licensing, A/R (Accounts/Receivable), and most importantly SBA financing for healthcare companies. It is critical that your business broker is familiar with the healthcare industry, can speak intelligently about your business, knows how to prepare offers for healthcare companies, and how to obtain SBA financing.
Buyer Screening & Qualifications
A vital aspect of selling healthcare companies is ensuring the buyer is capable of running the business, is willing and able to obtain the required licenses, and equally important, capable of closing the transaction. We receive lots of inquiries for healthcare businesses and many of the buyers, while financially well qualified, do not have the experience or technical skills to run these companies. At Pacific Business Sales we carefully screen prospective buyers for both financial qualifications and their ability to run the business. Our experience has taught us the buyers with weak industry experience may make an offer but often do not close the transaction. For healthcare companies, we look for buyers with the requisite experience and background.
Typically over 90% of our transactions use SBA financing, including SBA financing for healthcare companies. We work with SBA PLP (Preferred Lender Program) banks that have financed many SBA healthcare transactions with our firm.
Why is this important to you as a seller? Simply put, CASH at closing! With SBA financing you as the Seller don’t have to finance the sale with a Seller Note. In fact, in many cases, we have secured SBA financing for up to 90% of the purchase with a 10% buyer down payment which means you get paid 100% cash, less costs at closing. If your company carries A/R (accounts receivable) SBA financing will finance the purchase of your A/R by the Buyer as working capital which means you get paid for your A/R at closing!
Often the banks may require a small Seller Note of 10% of the transaction along with the SBA loan and in this case, you would receive 90% cash, less costs at closing.
FREE Market Value Analysis
We offer a free comprehensive Market Value Analysis of your business using the same methodology and professional valuation software used by SBA Valuation Analysts. We have excellent comparable sales data for healthcare companies like yours directly from the SBA closed transaction database. With our Market Value Analysis, you can be confident SBA financing will be approved at the value we recommend.
Healthcare Client Testimonials
“Homecare Services Seller, Orange County
Very impressed with the knowledge, expertise, and leadership applied in selling my small business. Started by setting a fair market value and found a great buyer within a reasonable time frame.” – Mark R, Seller/owner Orange County Home Care Services Company
“We engaged with Bill Grunau at Pacific Business Sales to list and sell our business and within a relatively short period of time, Bill had lined up three solid offers. We were able to choose from three qualified buyers and ended up with one who was the perfect fit for the business. From start to finish, Bill was a consummate professional. Selling a business is always stressful, and Bill’s experience, guidance, responsiveness, and calm demeanor were a huge help in seeing the transaction through to the end. If you are considering selling a business on your own or hiring a business broker I highly recommend that you talk with Bill” – Mark C.
Are You Ready To Get Started? Let’s Talk!
From Owner To Owner, We Understand How To Sell Your Healthcare Business
Healthcare companies are different from typical small to midsize businesses. Most have licensing requirements, many receive payments from Medicare/Medicaid and insurance companies, and many have contracts or referrals from hospitals or doctors. Consequently, the sale of your healthcare company is much more complicated than that of an ordinary business.
When it’s time to sell your healthcare business it is imperative you have a Business Broker that is familiar with these transactions, the licensing requirements and is knowledgeable about the sale and transition from Seller to Buyer.
For example, nearly all ordinary business sales are Asset Sales (see Stock vs Asset Sale), but healthcare companies are often Stock Sales in order to preserve licenses, certifications, and contracts. Because Stock Sales are far more complicated and uncommon, few Business Brokers are familiar with these transactions. At Pacific Business Sales we are very familiar with both Stock Sales and the sale of healthcare companies in Orange County, Los Angeles, and San Diego Counties.