You want to sell your physician practice? Then it's good to know what the takeover market in the field of physician practices looks like. Staff shortages are putting pressure on the health care industry. In addition, economic trends are causing money worries, which is causing more people to have health issues.
The number of physician practice mergers and acquisitions peaked in 2021 and 2022.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the healthcare and pharmacy sector - which includes a doctor's practice - an indicative EBITDA multiple range of 5.9 to 6.9 is currently used, according to the Brookz Acquisition Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the healthcare & pharmaceuticals sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in healthcare & pharmaceuticals. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are relatively many one-man practices in this sector, but the number of practices with 3 or more employees is also quite high.
In figures, the number of physician practices in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer physician practices many growth and acquisition opportunities:
Gone are the days when you visited your doctor for every complaint. Especially since online communication tools and self-care applications are becoming more and more important and better. Think of spreekuur.nl or thuisarts.nl. You can go there with your complaints and you can make an appointment with your GP directly if the complaint needs physical assessment. GPs can help more patients in less time because of this digitization.
While traditional medicine is primarily focused on treatment, the focus is increasingly shifting to prevention. Prevention is better than cure. And this is something where especially the younger generation of family physicians can add more value than the older generations.
