The South Carolina urgent care market is dynamic, marked by significant growth and active acquisitions from both health systems and private equity. For practice owners, this presents a unique window of opportunity. Navigating this landscape to achieve peak valuation and protect your legacy requires strategic preparation. This guide provides the insights you need to understand the market, prepare your practice, and make informed decisions about your future.
The South Carolina Urgent Care Market
A Growing Sector
South Carolina’s urgent care landscape is expanding rapidly. We see this growth driven by strong consumer demand for convenient and affordable alternatives to the emergency room. With a national growth rate of 7% for new centers, this trend is reshaping how patients access care in the state. This is a key reason why your practice is likely more valuable than ever. The recent repeal of most Certificate of Need (CON) laws has also opened the doors for more investment and development, further heating up the market.
Key Buyers Emerge
This growth has not gone unnoticed. Large players are making moves. We are seeing major health systems like MUSC Health and hospital groups like Novant Health engage in strategic acquisitions to expand their footprint. At the same time, private equity firms are increasingly active in South Carolina, looking for well-run practices to serve as platforms for growth. This diverse buyer pool creates a competitive environment for sellers.
Key Considerations for Owners
When you think about selling, the price is important, but buyers look at more than just revenue. They assess the stability and growth potential of your practice. Is your patient volume consistent? Is your center in a desirable location? A stable, well-trained staff and low reliance on any single provider can also make your practice much more attractive to a potential acquirer. These are the details that can turn a good offer into a great one.
Beyond operations, how you structure the sale has a big impact on what you take home after taxes. It also affects your future role, if any, and the legacy you leave for your team. Thinking through these details before you go to market is not just good planning. It is a core part of getting the best possible outcome for yourself and your practice.
What We’re Seeing in the Market
The consolidation trend in South Carolina is not theoretical. It’s happening right now. For owners, understanding this activity is key to timing your own transition. Here are three key trends defining the market:
- Major Health System Consolidation. The recent acquisition of Doctors Care, the state’s largest urgent care provider, by Novant Health is a landmark deal. It signals that major health systems are aggressively buying market share. This creates both competition and opportunity for independent practices.
- Rising Private Equity Interest. We are seeing more private equity firms enter the South Carolina market. They are looking for strong independent practices to use as a foundation for building larger regional networks. This brings a new type of buyer to the table, often with different goals and valuation methods.
- A Competitive Environment. With both strategic buyers (health systems) and financial buyers (private equity) active, a competitive tension is building. For a practice owner, this is good news. Running a structured sale process can leverage this competition to drive up value and improve deal terms.
Navigating the Sale Process
Selling your practice is a structured journey, not a single event. It begins long before a buyer is involved. The first step is preparing your practice and financials to tell a clear, compelling story of value. We then help you build a confidential marketing strategy to approach a curated list of qualified buyers without alerting your staff or competition. This creates a competitive environment designed to get you the best offers.
Once offers are in, the negotiation and due diligence phases begin. This is the most intense part of the process, where buyers dig into every aspect of your operations and financials. Many deals run into trouble here due to surprises or lack of preparation. Having an experienced guide to help you manage this stage is critical to keeping the deal on track and ensuring a smooth closing.
Understanding Your Practice’s Value
Many owners hear about simple “rules of thumb” for valuation, like a multiple of revenue. This approach is outdated and often leaves money on the table. Sophisticated buyers today value your practice based on its cash flow, specifically its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents the true earning power of your business by normalizing for owner-specific expenses.
This Adjusted EBITDA is then multiplied by a number that reflects your practice’s quality and risk. Factors like provider contracts, location, and growth trends all influence this multiple. A comprehensive valuation is the foundation of any successful sale.
| Valuation Approach | Description | Outcome |
|---|---|---|
| Rule of Thumb | A simple multiple of gross revenue. | Often inaccurate; misses true profitability. |
| SovDoc’s Method | Based on Adjusted EBITDA and a market-driven multiple. | Reflects true cash flow and strategic value. |
Life After the Sale: Planning Your Transition
Closing the deal is a milestone, not the finish line. A successful transition requires planning for what comes next. For many owners, this involves negotiating their future role. Will you stay on for a period of time, and in what capacity? Modern deals often include components like an earnout, where you can earn additional proceeds by hitting performance targets, or an equity rollover, where you retain a stake in the new, larger company. These structures can create significant future wealth but require careful negotiation.
Protecting your team and your legacy is another critical piece of the puzzle. The right buyer will not only see the financial value in your practice but also the cultural value. Ensuring a smooth transition for your dedicated staff is a key part of the negotiation process. We help you find a partner who respects what you have built and provides a secure future for the team that helped you build it.
Frequently Asked Questions
What is driving the growth of the urgent care market in South Carolina?
The growth in South Carolina’s urgent care market is driven by strong consumer demand for convenient and affordable alternatives to emergency rooms, a national growth rate of 7% for new centers, and the recent repeal of most Certificate of Need (CON) laws which has encouraged investment and development.
Who are the key buyers interested in acquiring urgent care practices in South Carolina?
Key buyers include major health systems like MUSC Health and Novant Health, who are actively acquiring to expand their footprint. Private equity firms are also increasingly interested in South Carolina to find well-run practices as platforms for growth, creating a competitive market for sellers.
What factors do buyers consider beyond revenue when valuing an urgent care practice?
Buyers assess factors such as consistent patient volume, a desirable location, a stable and well-trained staff, and low reliance on any single provider. These operational details are crucial in determining the attractiveness of the practice and can significantly impact the offer.
How is the value of an urgent care practice typically determined?
Valuation today is based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects the true cash flow of the practice by normalizing owner-specific expenses. This number is then multiplied by a market-driven multiple reflecting the practice’s quality and risk, such as provider contracts, location, and growth trends, rather than using a simplistic revenue multiple.
What should practice owners consider for life after the sale?
Owners should plan their transition carefully, including negotiating any future role within the practice, considering deal structures like earnouts or equity rollovers for additional future wealth, and ensuring their staff and legacy are protected by finding a buyer who values both the financial and cultural aspects of the practice.