New Jersey Brokers plus works with businesses in a variety of areas, including behavioral health. Our experience has given us some helpful tips in deciding how you should determine the value of your behavioral health business. Keep reading for some helpful things to know about your business’s value.
Your business is valued based on a number of factors. The main areas are:
- Annual Profitability – Your business profitability is one of the primary selling factor for buyers.
- Number of Providers – Buyers will want to know about your staff relationships, and that starts with the number of providers you have on staff.
- Scalability – Buyers will want to be able to have room to grow as needed. That is why the prior element is important. A solid staff that has a great relationship with the practice will be a selling point.
- How involved you are in the business and the overall strategy. Buyers will want to know the required amount of involvement that they will need to run the practice.
- Owner Salary makes a difference to buyers because that ultimately affects profits.
- Keeping your providers around and happy is important for buyers to understand the environment that they would be taking over.
- Lease Info – Your buyer will want to know about the cost of your rent and your lease term. This is important for buyers who may want to move the practice to a new location.
- Referrals – How strong is your referral system? It is very important for you to have a method of getting referrals. It is easy for your current patients to promote your business when they are happy.
- Insurance Details – A buyer will want to know the number of contracts and the contracted rates with insurance companies, EAPs, and other referral streams.
- Branding – Many practices are tied to the name of the owner. It is important for the buyer to know how the community views the practice in case they were to consider changing the name.
- Compliance – Buyers will want to know that your practice is compliant with professional, ethical, and legal standards of practice
- Web Presence – It is important to have a digital marketing strategy for your practice. We recommend that you have a strong grasp of your Google Rankings, and other elements that a buyer would like to know about your web presence.
- Equipment – It is important for a buyer to know if there are owned assets such as equipment or commercial real estate
We have experience bringing behavioral health business owners and potential buyers together. If you have any questions about how to sell your business, contact us today.
Mike has bought and sold a number of companies and founded NJ Broker Plus, LLC to assist New jersey business owners to sell their businesses and qualified buyers to purchase a profitable business. Over the past 3 years Mike has been instrumental in the sale of over 40 businesses.
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