subject: How To Select The Best Buyer For Your Urgent Care Center [print this page] At the end of the day, your urgent care center is worth as much as someone will pay for it. Therefore, selecting the correct buyer is crucial. Different buyers will come up with different valuations because they will use the data they desire, but the "best" buyer you can find is usually the one most motivated to buy your center.
Give yourself the advantage
The key to the process of selling your center is to research and be prepared, because this is not a learn-as-you-go process and you should not get your research from the buyer itself. A buyer's development team is trained to maximize its investor's profits, essentially by buying low and selling high. This means they want to obtain your center below its market value, which they try to do by keeping you from discovering what your market value is.
To discover your market value, you should become familiar with the acquisition industry and what motivates its players price, synergies, professional packaging, risk aversion, etc. You will also need to access a broad population of bids for your urgent care center. Competition will only increase your chances of finding the best buyer and obtaining the premium purchase proposals. This will help you select this "best" buyer to work with, and it will help you negotiate with that buyer.
To that buyer, your center will not only have its own intrinsic value, based on its projected future revenue, but it will also have strategic value because of its potential to "play well" with other holdings and create even higher profits in the future. Even some private equity groups or new management companies that are hot for a platform are more motivated than the ones that have been in the market of buying and selling urgent care centers for years. These buyers will work to be at the right edge of your normal bell curve (toward higher prices).
Using the negotiated bid solicitation process
In order to get this large population without exposing yourself to the mess of a public listing, you need this negotiated bid solicitation process. Some people call it a silent auction; in fact, that's what the big-box investment bankers do, but in the urgent care center space, I prefer this modified version where you actually call the potential buyers to discuss their interest. In practice, each buyer and each seller has a "zone of agreement" where you believe the "value" of your center is. You will work to not only select the bid with the highest zone of agreement, but also to land in the highest part of this zone once the negotiation process is complete.
Working through the process correctly should not only optimize your selling price, but also reduce your anxiety at the same time. Ultimately, how you run the sales process for your urgent care center makes a significant difference in determining what you are paid when you sell your center.
by: Daniel K Rush
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