Selling your Bariatric & Obesity practice is one of the most significant financial decisions of your career. In Oklahoma City, you are positioned in a market with exceptionally strong demand driven by regional health demographics. Realizing the full value of the business you have built requires more than just a willing buyer. Success depends on strategic preparation, expert positioning, and a clear understanding of the process. This guide provides the insights you need to navigate the path forward.
Curious about what your practice might be worth in today’s market?
Market Overview
The market for bariatric and obesity medicine in Oklahoma City is not just strong. It is one of the most compelling in the nation. This is not based on temporary trends, but on long-term demographic realities that directly fuel demand for your services.
A Market Driven by Need
Oklahoma has one of the highest adult obesity rates in the country, ranking third nationally with 40% of adults having a BMI over 30. Oklahoma City itself is a concentration of this demand. For practice owners, this translates into a large, sustained patient population that is not dependent on economic cycles. Buyers, from private equity firms to large health systems, see this demographic as a clear indicator of stable, long-term revenue and growth potential.
Investor Appetite
This sustained need has not gone unnoticed. We are seeing significant interest from well-funded buyer groups actively looking to enter or expand within the Oklahoma City market. They are seeking established practices with a strong clinical reputation to serve as a foothold or add to their existing platform. This creates a competitive environment that can drive premium valuations for prepared sellers.
The window of opportunity for optimal valuations shifts with market conditions.
Key Considerations for Bariatric & Obesity Practice Owners
While the market is favorable, a buyer’s perception of your practice’s value will depend on several specific factors. Before you ever begin a formal process, it is important to assess your practice through the lens of a potential acquirer. Taking an honest look at these areas now is the first step toward strengthening your negotiating position.
Here are three key areas to consider:
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Your Role in the Practice. Is the success of your practice tied entirely to you as the primary provider? Practices with multiple providers, or those with associate physicians driving a significant portion of revenue, are often seen as less risky and more scalable. A buyer will pay a premium for a business that can operate and grow without being completely dependent on the owner.
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Your Payer and Service Mix. A healthy mix of commercial insurance and cash-pay services is often ideal. While cash-pay services for obesity management can offer high margins, a strong base of in-network contracts demonstrates stability and a wide patient reach. Buyers will analyze this mix to understand the quality and predictability of your revenue streams.
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Your Growth Story. Buyers do not just buy your past performance. They buy your future potential. You need a clear, believable story about how the practice can grow. This could involve adding ancillary services, expanding to a new location, or hiring another provider. Having a well-defined growth plan can significantly increase a buyers interest and the multiple they are willing to pay.
Understanding your practice’s current market position is the first step toward a successful transition.
Current Market Activity
The M&A market for healthcare practices is active, and the bariatric specialty is a particular point of focus due to its favorable demographic tailwinds. Consolidation is the dominant trend, with different types of buyers pursuing practices for different strategic reasons. Understanding who these buyers are and what they want is key to positioning your practice effectively. For Oklahoma City bariatric practices, the most common buyers fall into three categories.
| Buyer Type | Primary Motivation | What They Look For |
|---|---|---|
| Private Equity Group | Platform creation, rapid growth | Scalable operations, strong EBITDA, multi-provider model |
| Regional Health System | Strategic expansion, referral network | Geographic fit, strong patient base, clinical reputation |
| National Bariatric Chain | Market entry, increased footprint | Turnkey practices, experienced staff, good location |
This competition for high-quality practices works in your favor. When multiple buyers are interested, it creates the leverage needed to secure better terms and a higher valuation. The key is running a structured process that brings these different buyer types to the table in a confidential, controlled manner.
Finding the right type of buyer for your practice depends on your specific goals.
The Four Stages of the Sale Process
Selling your practice is a structured journey, not a single event. While every deal is unique, the process generally follows a predictable path. Knowing these stages helps you prepare for what lies ahead and ensures you are never caught on the back foot.
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Preparation and Valuation. This is the most important phase. It is where we work with you to analyze your financials, normalize your earnings, and prepare the confidential materials that tell your practice’s story. It culminates in a comprehensive valuation that sets the foundation for the entire process. Starting this step 12 to 24 months before your target sale date is ideal.
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Confidential Marketing. We identify and discreetly approach a curated list of qualified financial and strategic buyers. Your identity and the specifics of your practice are kept completely confidential. We manage all interactions to generate interest and initial offers without disrupting your staff or patients.
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Negotiation and Due Diligence. After selecting the best initial offer, you move into a formal Letter of Intent (LOI). This is followed by due diligence, where the buyer verifies your financial and operational information. This is often the most intense phase and where many deals falter without proper preparation.
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Closing and Transition. Once due diligence is complete, lawyers draft the final purchase agreements. After the deal closes, the transition to new ownership begins based on the terms negotiated in the sale.
The due diligence process is where many practice sales encounter unexpected challenges.
How Your Practice is Valued
Many physicians believe their practices value is based on a simple “rule of thumb” or a percentage of revenue. The reality is that sophisticated buyers use a much more disciplined approach. The entire valuation rests on two key components.
It Starts with Adjusted EBITDA
Buyers are not interested in your net income or what is on your tax return. They focus on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). To calculate this, we start with your reported net income and add back non-cash expenses like depreciation. Then, we “normalize” your earnings by adding back owner-specific personal expenses (like a personal car lease run through the business) and adjusting your salary to a fair market rate. For example, a practice with a $500,000 net income might have a $700,000 Adjusted EBITDA after these changes. This single number is the foundation of your valuation.
Applying the Right Multiple
The Adjusted EBITDA is then multiplied by a number called the “valuation multiple.” This multiple is not fixed. It changes based on specialty, geography, risk, and growth potential. A smaller, owner-dependent practice might receive a 3x to 5x multiple. A larger, multi-provider practice with a clear growth plan could command a 6x to 8x multiple or higher. An expert assessment determines the right multiple for your specific practice based on real-time market data.
Physicians who understand EBITDA optimization typically achieve 25-40% higher valuations.
Planning for Life After the Sale
The day you sign the closing documents is not the end of the journey. A successful transition is defined by what happens next for you, your team, and your financial future. The structure of your deal is just as important as the price, and it requires careful planning from the very beginning.
Here are three final considerations that will shape your legacy:
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Your Future Role. Do you want to retire immediately, or would you prefer to continue practicing for a few years with less administrative burden? You can negotiate your future role. Many deals involve a 1 to 3 year employment agreement, allowing for a smooth transition for patients and staff.
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Your Team’s Transition. You have likely spent years building a dedicated, talented team. Protecting their future is a key priority for most practice owners. We can help structure the deal to include provisions for retaining key staff and maintaining the practice’s culture.
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Your Financial Outcome. The headline price is not what you take home. The structure of your sale, including things like an earnout (additional payments for hitting future performance targets) or an equity rollover (retaining a minority stake in the new, larger company), has massive tax and wealth creation implications. A rollover, for example, gives you the chance for a “second bite at the apple” when the larger entity sells again in the future.
Your specific goals and timeline should drive your practice transition strategy.
Frequently Asked Questions
What makes Oklahoma City a strong market for selling a Bariatric & Obesity practice?
Oklahoma City has a high demand driven by regional health demographics, including one of the highest adult obesity rates in the country with 40% of adults having a BMI over 30. This creates a large, sustained patient population and stable, long-term revenue potential that attracts well-funded buyers.
Who are the typical buyers interested in purchasing Bariatric & Obesity practices in Oklahoma City?
The most common buyers include Private Equity Groups seeking platform creation and rapid growth; Regional Health Systems interested in strategic expansion and referral networks; and National Bariatric Chains looking for market entry and increased footprint. Each type values different aspects like scalability, geographic fit, or turnkey operations.
What factors influence the valuation of a Bariatric & Obesity practice in Oklahoma City?
Valuation is primarily based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and an applied valuation multiple. Factors like the practice’s size, provider makeup, payer and service mix, and growth potential affect the multiple, which can range from 3x-5x for smaller practices to 6x-8x or higher for multi-provider scalable ones.
What are the key stages in the sale process of a Bariatric & Obesity practice?
The sale process generally involves four stages: 1) Preparation and Valuation where financials are analyzed and confidential materials prepared, 2) Confidential Marketing targeting qualified buyers discreetly, 3) Negotiation and Due Diligence involving offer selection and validation checks, and 4) Closing and Transition with final agreements and ownership handover.
How can sellers plan for life after selling their Bariatric & Obesity practice?
Sellers should consider their future role (retirement or continued practice), plan for their team’s transition to protect staff and practice culture, and structure the financial outcome carefully. This includes considering employment agreements, earnouts, equity rollovers, and other deal structures that impact tax and wealth creation.