The Indiana urgent care market is active, driven by strong patient demand and ongoing consolidation. For practice owners, this presents a significant opportunity. Navigating the sale process correctly is the key to realizing your practice’s full value. This guide provides a direct look at the market conditions, key considerations, and strategic steps for a successful transition in Indiana.
Curious about what your practice might be worth in today’s market?
Market Overview
The timing of your practice sale matters. Right now, the market for urgent care centers is expanding. The sector’s national revenue is projected to hit $48 billion this year. This growth signals strong investor and buyer interest.
A Growing National Landscape
Across the country, the number of urgent care centers nearly doubled between 2014 and 2023. This trend is driven by patient demand for convenient, cost-effective care. For a seller, this means you own an asset that is part of a growing and attractive healthcare segment. Buyers are actively looking for established practices to enter or expand in this space.
The Indiana-Specific Opportunity
Indiana mirrors this national trend. With a strong base of over 130 clinics and a high density of facilities in areas like Indianapolis, the state has a mature urgent care ecosystem. We see substantial patient volumes, with some facilities reporting over 11,000 visits in a single year. This demonstrates a reliable and consistent patient base, a key factor that attracts premium buyers.
Key Considerations for Indiana Sellers
A positive market is just the starting point. When you decide to sell your Indiana urgent care, your preparation will directly impact the outcome. Beyond financials, buyers will look closely at your operations and regulatory standing.
A recent change, Indiana Senate Bill 9, now requires prior written notice to the Attorney General for many healthcare mergers. This is not a barrier. It is a defined process that must be navigated correctly. Your readiness in other areas is just as important. Buyers will analyze your staffing stability, the efficiency of your EMR system, and the diversity of your service lines and payer mix. Preparing these details before you go to market ensures a smoother due diligence process and protects your valuation.
The structure of your practice sale has major implications for your after-tax proceeds.
Market Activity and Consolidation
The urgent care sector is a focus for acquirers. While the total number of M&A deals has changed year to year, the principal story is consolidation. Larger health systems and private equity-backed groups are actively acquiring smaller practices to build regional and national platforms.
Here is what you need to know about the current activity.
- Consolidation Defines the Market. The recent acquisition of Physicians Immediate Care by WellNow Urgent Care is a prime example of this trend. Strategic buyers are looking for established practices to gain market share quickly.
- Buyers are Sophisticated. The acquirers in today’s market are often large, experienced operators. They are looking for well-run practices with clean financials and demonstrated growth potential.
- This Creates Opportunity. For independent owners, this trend presents a clear exit path. Your practice can be an attractive, strategic asset for a larger group looking to expand its footprint in Indiana.
Timing your practice sale correctly can be the difference between average and premium valuations.
The Sale Process at a Glance
Selling your practice is a structured process, not a single event. It begins long before a buyer is involved. The first step is preparation, where you organize your financial and operational documents to present a clear and compelling story. Next, we would confidentially market your practice to a curated list of qualified buyers, creating a competitive environment to drive value. This is followed by negotiating offers to secure the best possible terms. The final major stage is due diligence, where the buyer verifies all information about your practice. This is often where deals face challenges, making thorough preparation at the start so important.
Preparing properly for buyer due diligence can prevent unexpected issues.
Understanding Your Practice’s Valuation
Your practice is likely worth more than what its tax return shows. Sophisticated buyers value your urgent care based on a metric called Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. The “Adjusted” part is key. It means we add back expenses that a new owner would not incur, like your personal auto lease or a one-time equipment purchase. This gives a truer picture of the practice’s profitability.
Here is a simplified example of how this works.
| Financial Item | Amount | Explanation |
|---|---|---|
| Reported Net Income | $400,000 | The profit on your books. |
| Add: Owner’s Excess Salary | $100,000 | The portion of your salary above market rate. |
| Add: One-Time Legal Fee | $25,000 | A non-recurring expense. |
| Adjusted EBITDA | $525,000 | The cash flow a buyer values. |
This Adjusted EBITDA figure is then multiplied by a number (a multiple) to determine your practice’s enterprise value. That multiple is influenced by factors like your practice’s size, reliance on a single provider, and growth history.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Planning for Life After the Sale
The transaction is not the finish line. A successful exit strategy includes a clear plan for what comes next, both for you and your practice. You should consider the tax implications of the sale structure, as this will directly affect your net proceeds. You also need to decide on your own transition. Do you want to retire immediately, or would you prefer to stay on for a period to ensure a smooth handover? Protecting your staff and the legacy of patient care you have built is also a critical part of the plan. These are key negotiating points that should be addressed early in the process to ensure the right buyer and deal structure are chosen.
Your legacy and staff deserve protection during the transition to new ownership.
Frequently Asked Questions
What is the current state of the urgent care market in Indiana for sellers?
The Indiana urgent care market is active and growing, driven by strong patient demand and ongoing consolidation. With over 130 clinics in the state and high patient volumes in many areas, sellers have a significant opportunity to realize full value for their practices.
What key factors should I prepare before selling my urgent care practice in Indiana?
Preparation is crucial and includes organizing your financial and operational documents, ensuring staffing stability, maintaining an efficient EMR system, and demonstrating diversity in your service lines and payer mix. Additionally, due to Indiana Senate Bill 9, prior written notice to the Attorney General is required for many healthcare mergers.
How is my urgent care practice’s valuation determined during a sale?
Valuation is primarily based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which adjusts for non-recurring expenses and owner-related excess costs. This adjusted figure is then multiplied by a market multiple influenced by practice size, provider reliance, and growth history.
What trends are influencing urgent care practice sales in Indiana?
The market is defined by consolidation where larger health systems and private equity groups are acquiring smaller practices to expand regional or national platforms. Buyers are sophisticated, seeking well-run practices with strong financials, creating favorable exit opportunities for independent owners.
What should I consider regarding my transition and life after selling my urgent care practice?
Planning for life after the sale includes considering tax implications of the deal structure, deciding whether to retire immediately or stay on temporarily, and protecting your staff and the legacy of patient care. Addressing these early helps ensure you select the right buyer and deal structure.