How To Best Use The Coming Drop In Interest Rates To Your Advantage
This week, Paul discusses how national interest rates are about to change, and explains how his upcoming interview with the leaders of our M&A practice can help you be the first in your market to take advantage of the drop in interest rates.
Full transcript
Generated from the episode audio and lightly edited for readability.
Hello, this is Paul Martin and welcome to another episode of the Martin Rehab M&A advisory. Today we're going to dive into some big news for those of you who are running multicl clinic physical therapy operations. And as someone who has been in your shoes, having owned and sold a large multi-site clinic business, I know firsthand the importance of the challenges and the decisions that you face and overcoming those. Interest rates are expected to drop soon. That is the news we are sharing with you today. And I'm sure you all know that.
That makes this a really important time for anyone who is considering possibly selling your business or we could define it as finding a larger partner in the industry. This interest rate drop is going to mean cheaper, less expensive capital for acquirers, especially those that are backed by private equity. We're seeing these groups gearing up now to make their moves swiftly and decisively. And now more than ever is the time to ensure your business stands out among all the other multicl clinic companies out there. Now, as you know, our approach has been designed to put your business first, your business above the rest.
Your business at the top of the acquirer list. And we do that by conducting a thorough assessment of your business, by preparing and getting your business market ready, and then initiating what we describe as a synchronized competition among the best acquirers, among the best acquirers. Not just all the acquirers, the best acquirers. But before you take this step, I think there are some essential questions that you need to have answered. Couple questions I have for you. Have you sat down recently with your spouse, with your advisors, and your partners, if you have partners, and have agreed on what you need to get receive from a transaction in order to take the big step of moving forward.
Your question list should include many questions. First of all, what's the financial yield of the transaction as well as your responsibilities? What they would be postacquisition as well as what your compensation would be postacquisition and most importantly what are the criteria a list of criteria by which you will use to evaluate potential partners. It really helps you to keep you focused and on track once you're out there in the market that you have your criteria on how you are judging the acquirers versus the other way around.
And have all of you agreed on the characteristics of the acquire that would be the best fit for you for your people as well as for the culture that over so many years that you have built. Another question, have you updated your plan for growth through and after the transaction? That's what acquirers want to see. How have you grown to the transaction? And what are your plans for after the transaction? Does it really explain your plan? How your leadership team can grow and take advantage of the additional resources that will become available to them post transaction.
Really impressive to an acquirer. Then finally, are you truly personally ready to finish this chapter of your life and your career and graduate to the next? Because the next will have extraordinary opportunities, but some obvious differences in the way in which you have been living day in day out in your business. And again, this is something that I have been through that just about everybody on our team has been through. So we can help you prepare for this potential event. And the fact that interest rates are going to see a drop.
This could be a great time to start getting ready. Now, in order to fully understand how the market will change in the very near t future, I'm going to interview Tom Carden, our executive director of mergers and acquisitions, and our merger and acquisition director, Joe Anzur, to explore what these changes will mean for your future. They're going to dig into the details of these financial changes as well as the details on what makes these private equity groups tick and why this is going to culminate in a surge of transactions.
We're going to be sharing this interview soon and it's something that you absolutely do not want to miss. Now, in addition, our entire team, obviously, including myself, is going to be at the private practice section conference in Washington, DC coming up at the very beginning of October. This is a great opportunity to meet and discuss how you can prepare your business for these significant new financial trend trends. Excuse me. You will have the opportunity at that conference to talk to myself or one of our executive directors in person.
Or if you would prefer, you could set up a call sooner than the conference. And then we can also have another conversation at the conference if you'd like. Now is the perfect time to start understanding the value that you bring to today's market. How to improve your value and then identifying who are the best acquirers that match your culture, your geographic needs, as well as your leadership style. So, with all that said, if you want to scroll to the bottom of this page, you're going to find opportunities to chat with me, sign up for a call, or potentially meet with one of us at this upcoming private practice section conference.
And finally, don't forget to subscribe to our video series for weekly insights like this. Have a great day, and I look forward to talking to you in the very near future.
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