FAQ

The questions owners actually ask.

These are the questions our advisors hear most, in the order owners actually ask them. There is no question about transitioning a practice we at Martin Healthcare Advisors have not been asked, and none we will avoid. You will get a direct answer, including when it is not the one you were hoping for.

Asked on almost every call

What is it worth, and what am I getting for the fee

Our advisors were surveyed on what prospects ask them. These four came up on nearly every call.
›What is my practice actually worth?

The first question almost every owner asks, and the one nobody should answer casually. Value comes from your earnings, how much risk an acquirer sees in them, and what buyers are paying for right now. Get a range in two minutes with the value calculator, or the real number from the Outside-In Assessment.

›What am I getting for the money, and what are the deliverables?

Every engagement has a defined deliverable, not open-ended advice: a defensible valuation, a written plan, or a completed transaction. What each one costs is published on the Exit page, and what the last two clients got back is on the case studies.

›What can I do today to raise my value before I go to market?

Build earnings and cut the risk attached to them. Charge capture, schedule management, and staffing are the three that move fastest, and a year of that work is what took the last client from a 5x to an 8x.

›How long does it take, and how much of my time will it cost?

A transaction typically runs six to twelve months from preparation to closing, and preparation before that is what shortens it. We handle most of the data gathering ourselves, because the owner still has clinics to run.

PLACEHOLDER
Value & readiness · Paul
What if my practice isn't profitable enough to transition yet?
Answers: What if I don't have enough EBITDA yet? I'm close to break-even, is a transition even possible? What's the path from not-ready to ready?
PLACEHOLDER
Survey question · Paul
Specialist M&A advisor, business broker, or investment banker
Answers: Aren't you just brokers? The difference between an M&A advisor and a business broker? Can't my accountant, attorney, or a friend handle this?
PLACEHOLDER
Problems lane · Josh Meyers
What we see go wrong in prep and diligence
Answers: What avoidable mistakes do you catch before they cost money at closing? How does disorganized or inaccurate data hurt an owner?
You, your staff, and what changes

Life after the transaction

The second cluster of questions is never about money. It is about what happens to the people and the practice.
›Do I have to keep working after I transition?

Usually for a while, but the length and shape of your role is negotiable, and you have far more say over it than most owners assume. It is a term we negotiate, not a default you accept.

›What actually changes after an acquirer takes over?

Less than owners fear with the right partner, more than they expect with the wrong one. Picking the partner who changes the least is a selection criterion, and we know which ones those are.

›What happens to my staff, patients, and culture?

That is decided in the terms, not after closing. It is one of the six places transitions go wrong when owners negotiate alone, and one of the first things we negotiate for you.

›Will anyone find out I am exploring this?

No. Confidentiality is engineered into every step, see how we keep a transition confidential on the services page.

PLACEHOLDER
Process · Paul
Do I have to keep working after I transition, and for how long?
Answers: Will I have to stay on, and for how long? My options for role and length of service? How much say do I have?
PLACEHOLDER
Process · Paul
What actually changes after an acquirer takes over
Answers: What changes day-to-day? Will they overhaul how I run my clinics? How do I pick a partner who changes the least?
Your options and the process

Paths, buyers, and where transitions go wrong

What owners ask once the valuation question is answered and the process becomes real.
›Should I just sell to the acquirer who keeps calling me?

Usually not. One unsolicited offer gives you no way to know if it is fair, and skipping a competitive process almost always costs more than any fee saves. Paul walks through the math in the video below.

›What are my three main paths?

Private equity, a strategic acquirer, or your own team. Each suits a different owner and a different goal, the right choice starts with yours, not the acquirer's.

›Aren't you just brokers?

No. A broker lists your practice; an M&A advisor prepares it, values it, runs a competitive process, and negotiates terms, work your accountant and attorney aren't positioned to do alone (though we work closely with both).

›How do transaction structures actually work?

Almost every owner arrives having heard a rumor about one. Cash at close, rollover equity, earnouts, and seller notes all change what the headline number is really worth, and understanding them is a large part of what we do before you ever sign.

›What if my practice isn't profitable enough yet, or too small?

Then you are exactly who our consulting exists for. There is a path from not-ready to ready, and it starts with knowing where you stand, not with a transaction. If we do not think a transaction serves you yet, we say so early.

›What can go wrong when you transition?

Six things, mostly: selling to the first caller, going to market unprepared, mispricing, terms that ignore staff and culture, running diligence and clinics at the same time, and choosing the wrong partner. All avoidable, watch the video below.

VIDEO PLACEHOLDER · 4:15
Comparisons · Paul
Your three paths for transitioning
Answers: What are my three main paths, and who does each suit? What changes if I sell to private equity? The tradeoffs with a strategic acquirer? Selling to my own team? Choosing on my goals, not the acquirer's?
VIDEO PLACEHOLDER
Survey question · Paul
Should I just sell to the acquirer who keeps calling me?
Answers: An acquirer keeps reaching out, should I negotiate directly? Won't one buyer be faster and cheaper? What do I give up by skipping a competitive process? How do I know one unsolicited offer is even fair?
VIDEO PLACEHOLDER · 1-2 MIN
Comparisons lane · Joe Anzur
Acquirer types from the transaction table
Answers: How do PE, strategic, and internal paths really differ once you're in the room? Why not just negotiate directly with the buyer who called?
VIDEO PLACEHOLDER · 4:00
Problems · Paul
The 7 ways a transition can go wrong
Answers: What happens if I sell to the first acquirer who calls? The risk of going to market unprepared? How do owners misprice their practice? What happens to staff, patients, and culture in the terms? Can I really run diligence and my clinics at the same time?

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