Why Owners Often Wait Too Long To Prepare For A Sale
In this episode of Opportunities for Action, Paul reviews his recent talk with Tom Carden and Joe Anzur, and explains why sale preparation should begin sooner than you think.
Full transcript
Generated from the episode audio and lightly edited for readability.
Hello and welcome to another episode of the Martin Rehab M&A Advisory. Today we are going to have a special opportunity for action episode based on our conversations with Tom Carden and Joe Anzur, two of our senior leaders here at Martin Healthcare Advisors. I'm excited to talk to you from our new office here in Marlton, New Jersey. And so let's jump right in and talk about some of the key issues brought up by Tom and Joe and how you can prepare for this current market. So Tom and Joe provided some valuable perspectives on this current market and the conditions and why now is an excellent time for physical therapy business owners to consider selling or partnering with a larger company.
They emphasize that the industry is solid right now with many new acquirers and lots of interest in companies that we have put out into the market. Our experience at Martin Healthcare Advisors has shown that business owners often wait too long to prepare their businesses for a sale. So depending upon your practice, preparation for a successful match with a large comp company and a success successful match for us is first that the culture, second the business structure, and then third price. And that can take anywhere from 30 days up to three years.
And there are some very specific criteria that the acquirers are looking for. And working on those areas of your business will bring a far better outcome for you and your staff. As you recall, Tom mentioned the significant role of private equity in this current market and how several large private equity backed companies are approaching that five-year mark. That's what we call the recap mark where they're going to sell to a larger private equity group. And this is likely to impact mergers and acquisitions in the near future, making it an opportune time to position your business if it is a time that you're ready to potentially look for a larger partner.
Joe highlighted that efficiency is key in today's market. Practices that can prove their operations to be more attractive to potential buyers will absolutely stand out. And it's real important to watch economic factors like inflation and interest rates. As you may have heard about three or four days ago, they're talking about potentially an interest rate drop. This will impact valuations and attractiveness for acquisitions in this market. It's essential to have a plan and a plan to prepare your business professionally for the market. You know, a sale partnership is very likely for you as a business owner a once-ina-lifetime event and you want to make the best of it for your family, for your future, and for your business and your staff.
You know, at Martin Healthcare Advisors, we have worked over the years dividing devising what we call an outside in assessment. And it can give you your current it will give you your current value. It's going to show you what value your business is capable of driving. So, your current value and then what is what value are you capable of driving based on your current situation if you can follow some specific strategies that our team will recommend. Our team does this every hour of every day. This is all we do is improve businesses and then take them successfully into the market.
And we will help you prepare and make sure that when the time comes, your business is ready to achieve the best possible outcome. Don't wait too long. You know, future trends in the outpatient physical therapy merger and acquisition market suggest that now is a good time to pop your head up, look around, and position your business to take advantage of these trends if it is right and the time for you. Remember, and I've said this many times, preparation is the key to great deals. Whether you want to remain independent or test the M&A market, Martin Healthcare Advisors can help you in that outside in assessment to prepare your business for the future.
Again, don't wait till it's too late and the market has gone by you. Reach out to us, click below, have a conversation with me, and let's talk about how you can best understand where your business is in your current market in terms of its value and future potential. Until next time, take care and keep planning for your success. Thank you. This is Paul Martin signing off.
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