Addiction and mental health awareness are hot topics these days, with the behavioral health sector expanding rapidly. The online behavioral health market is forecasted to grow to $227.5 billion by 2032, with a CAGR of 5.3%. In the dynamic nature of the market, business owners can make thousands on top if they sell at the right time before the market gets saturated. To achieve the highest Return on investment, Expert Sell-Side Advisory becomes a crucial step for owners!Â
Strategique Partners can be your expert sell-side advisors in the most profitable way to sell M&A for your behavioral health business. Consult Us!Â
How Sell-Side Advisory Can Be Beneficial for Behavioral Health Business Deal
Selling a running business can be cumbersome as it comes with various administrative and legal complexities that owners cannot keep track of even if they have the main procedure in mind. However, seeking experts in the field of sell-side M&A advisory can reduce risk and manage all the processes with benefits including.
- Expert Financial Analysis
It provides a comprehensive financial review of the business’s revenue, cash flow, and expenses, which shows real financial value and areas for improvement.
- Getting Market Insights
Due to their extensive expertise, advisors are equipped with knowledge that helps them determine market trends, value, and potential buyers who are interested in buying, thus providing market insight.
- Developing Marketing Strategy
Experts have a good standing in the market, and their trust helps position your business in the market and reach out to potential buyers for better profit.
- Gaining Access to Legal Expertise
The M&A process can be simplified by the legal insight and expertise of advisory, as they have years of experience in it, making it streamlined in every way!
Factors That Can Maximize Your Behavioral Health Business Value
To maximize your profit when selling your business, there are several factors involved; the three most important include:
1. Patient Reviews and Treatment Outcome
One of the promising factors in valuing a behavioral health business is the patient reviews and client retention. Your business value blooms if you have a good market reputation and a strong client referral system. Investors cash the opportunities that have a strong client return and treatment reviews.
2. Regulatory Compliance
A behavioral health practice with all its licensing, regulatory, and accreditation poses a significant price on the table. A business with all the legal prerequisites attracts heavy investors and runs smoothly in terms of revenue and client returns.
3. Revenue Stream
A rehab with multiple treatment modalities, such as outpatient, intensive outpatient, and residential services, offers high revenue streams. Focus on expanding your treatment services.
The Process of Sell-Side Advisory in Selling
The sell-side advisory is not a one-go process but requires time 5 the main steps involved are explained as follows:
1. Preparation
The first step that advisors will perform is preparing the business for sale, which will include the following:
- Gathering administrative data
- Performing financial analysis
- Reviewing the wear and tear of the building
- Reviving the commodities and supplies
- Staff consents
- Patient records
It also involves planning the sale process, finding the buyer, and marketing the business’s sale.
2. Evaluation
After gathering all the data, the next step will be performing a financial valuation of the behavioral health business that includes:
- Preparing financial reports
- Analyzing asset values
- Reviewing market position
- Real state pricing
- Assessment of competitive market
- Demands of services offered
Based on all the above points, the business will be analyzing its true potential to put the appropriate price.
3. Marketing
Now the best part of sell-side advisory is that they have contacts in the market and can position your business for sale to the investors looking to purchase. As they have performed all the advisory, they can reach out to potential buyers with effective strategy and high return on investment (ROI).
4. Due Diligence
If the buyer is interested, the advisor will proceed with the due diligence process, which reviews important aspects of the business, including:
- Buyer’s and seller’s financial analysis
- Legal and accreditation documents
- Market position and analysis
- Operational assessment
- Functional assessment
- Commercial assessment
Due diligence is crucial to ensure that the prerequisites are correct, no false information is provided, and no flaws are detected before moving on with the deal!
5. Negotiating and Closing
The Final step of sell-side advisory is proceeding with the negotiation for the best price and closing the deal. Advisors will ensure that both the buyer and seller get the best price and make it profitable for both business owners. After the deal is finalized, closing the deal will constitute:
- Finalizing purchase agreement
- Finalizing employment agreements
- Lease agreement
- Seller consents
- Compilation of documents
After all the prerequisites, the post-deal transition begins where the business is smoothly transferred to the new owners with proper development guidelinesÂ
Why Someone Would Want to Sell Their Behavioral Health Business?
Managing a healthcare business, most importantly, behavioral health is a daunting task as it comes with loads of responsibilities along with the managing business. Setting up a new behavioral health is another task, but continuing it requires effort and dedication. However, many owners seek exit due to various reasons:
- Looking for new venturesÂ
- Considering retirement
- Being an investor and selling for profits
- Struggling to maintain clientele
- Looking for collaboration
Whatever the reason for selling, an expert sell-side advisory can plan your safe exit and secure your life-long investments!
Ready to Make a Deal? Embark on a Profitable Return with Strategique Partners!
Strategique partners help behavioral health business owners sell their businesses to the right buyers, maximizing their investment. We also provide a safe exit strategy and post-transition plan for exploring new ventures. Apart from sell-side advisory, we provide:
Consult our experts to discuss how you can review the sale procedure!
Common Queries Regarding Sell-Side Advisory
Sell-side Advisory often poses some confused queries that we have addressed:
What Is the Difference Between Buy-Side Advisory and Sell-Side Advisory?
Major differences between the two include:
| Buy-Side Advisory | Sell-Side Advisory |
| Consultation for the buyer of a business | Consultation for the seller of a business |
| The advisor will prepare all the prerequisites of financial, due diligence, and contracts for the buyer | The advisor will look for buyers, market the business, and prepare the deal for the seller |
| Negotiates in favor of the buyer | Negotiates in favor of the seller |
What Does an M&A Advisory Do?
M&A advisory prepares a business for sale or purchase according to client demand. The whole process includes:
- Deal Preparation
- Financial Valuation
- Regulatory and Legal Analysis
- Due diligence
- Negotiation
- Closing deal
- Transition
It’s a highly expert process that requires careful planning and only seeks those who are experts in the field.
How to Run a Sell-Side M&A Process?
Some of the steps to perform Sell-Side M&A include:
- Preparing the business for sale
- Marketing business saleÂ
- Identifying buyers and preparing Letters of Interest
- Due diligence
- Purchase agreement and closing deal
After that, transition and post-transition development are performed, which can also be availed by experts.
How Can I Prepare My Business for Sale?
There are some major steps that you can take to prepare the business for sale:
- Perform financial audit
- Gather and record your assets
- Prepare your documents
And finally, start marketing your business for sale or hire experts for yourself!
Related Resources:
- Behavioral Health M&A Consulting Services: Common Mistakes and Solutions
- 7 Expert Guided Solutions to Improve Your Behavioral Health Revenue Cycle
- Healthcare Business Consulting: All You Need to Know
- Why Should You Hire Drug Rehab Consultants to Open Your Rehab Center?
- 5 Proven Strategies for Successful Behavioral Health Mergers & Acquisitions
- Importance of Healthcare Business Valuation in M&A: A Guide for Company Owners
From Author
Engaging in the sell-side advisory of a behavioral health business demands meticulous preparation and a strategic approach. As a seller, your goal is to present your business in the best possible light to attract the right buyer, ensuring that the sale aligns with your financial objectives and future aspirations. Effective selling isn’t just about listing numbers; it’s about showcasing the value of your programs, operations, and dedicated staff. Comprehensive market analysis and a deep understanding of your company’s standing in the industry are essential to facilitate a smooth transaction. By leveraging digital tools to validate licensing and credentials, and by emphasizing your reputation among clients, you can enhance your business’s appeal. Navigating this complex process can be daunting, but our expertise at Strategique Partners can guide you through every step, ensuring you achieve the best outcome in your behavioral health business sale.
