Guide to Selling a Dermatology Practice in Ohio

Selling your dermatology practice in Ohio is one of the most significant financial decisions you will ever make. In today’s market, buyer interest is strong, but a successful outcome depends entirely on your preparation and strategy. This guide offers a clear overview of the current landscape, the steps involved, and how to position your practice for maximum value. It is designed for owners who are starting to consider their options and want to understand the path ahead.

Market Overview

The M&A market for dermatology practices in Ohio has its own unique story. While national trends can fluctuate, Ohio remains a region of interest for acquirers, from large national platforms to growing regional groups. They see the states stable population centers and established referral networks as a solid foundation for growth.

Strategic Interest in the Buckeye State

We have seen national buyers specifically target Ohio markets. They are looking for well-run practices that can serve as a base for further expansion. These groups are sophisticated and understand that a strong local reputation in cities like Columbus, Cleveland, or Cincinnati is incredibly valuable. They are not just buying assets. They are buying a strategic foothold into a community.

What This Means for You

For you as a practice owner, this means there is a ready audience of potential buyers if you decide the time is right. An acquirer’s interest often depends on more than just your revenue. They look at your location, your provider mix, and your referral sources. Understanding what these buyers are looking for is the first step in a successful transition.

Key Considerations

A successful sale is about more than the final price. The most important work happens long before your practice is ever presented to a buyer. It starts with organizing your financials to clearly show the practice’s true profitability, a figure we call Adjusted EBITDA. This means looking beyond your tax return to account for personal expenses or one-time costs. Your practice’s story is also told through its operational a, from patient intake to billing. Buyers look for efficiency. Finally, finding the right partner is crucial. The highest offer is not always the best one if the buyers vision doesnt align with your goals for your patients and staff. Assembling an experienced M&A team early can help you navigate all these areas.

Market Activity

The market rewards preparation and process. Owners who achieve the best outcomes are the ones who are ready when opportunity knocks. Here are three things we consistently see in todays’ successful dermatology transactions in Ohio.

1. Competitive Tension Drives Value. A single, unsolicited offer is rarely a practice’s best offer. The greatest value is created by running a confidential, structured process that brings multiple qualified buyers to the table at the same time. We have seen this approach result in eight or more offers for a well-prepared practice.

2. Speed Rewards Preparedness. Buyers have little patience for disorganized information. Practices that have their financial and operational data in order can move through the sale process efficiently, sometimes in less than six months. This momentum is key to keeping buyers engaged and focused on closing the deal.

3. Partnership Models Are Common. A sale does not always mean a complete exit. Many deals involve the selling physician rolling over a portion of their equity into the new, larger company. This allows you to take chips off the table now while participating in the future growth of the platform.

The Sale Process

Selling your practice is a marathon, not a sprint. It requires commitment and a clear understanding of the steps involved. While every transaction is unique, a professionally managed sale generally follows a structured path. This approach ensures confidentiality, maximizes competition, and keeps the process on track.

Valuation

Many owners ask,
What is my practice worth?
The answer is based on a straightforward concept: Adjusted EBITDA times a valuation multiple. Think of Adjusted EBITDA as the true engine power of your practice. It is your profit after adding back owner-related perks, non-recurring expenses, and any above-market owner compensation. This number gives a buyer a clear picture of the cash flow they can expect. That figure is then multiplied by a number that reflects your practices quality and risk. A larger, multi-provider practice with a strong growth trend in a desirable Ohio market will command a higher multiple than a smaller practice reliant on a single physician. An expert valuation does more than find a number. It builds the story that justifies that number to a buyer.

Post-Sale Considerations

Signing the closing documents is not the end of the journey. A well-planned transition considers what happens on day one and beyond. Thinking through these points early in the process is critical to your long-term satisfaction.

Your Future Role

What do you want your professional life to look like after the sale? Many transactions require the selling physician to continue practicing for a period of time. You will transition from owner to a key employee or clinical partner. It is important to understand this new dynamic and ensure your employment agreement reflects your goals for work-life balance and clinical autonomy.

Your Team’s Future

Your staff is one of your practices most valuable assets. A key part of negotiations is ensuring your loyal team members are treated fairly. This includes discussions about retaining staff, honoring existing benefits, and creating a positive culture under new ownership. Securing these assurances is a hallmark of a good partnership.

The Financial Picture

Many dermatology deals are not 100% cash at close. A portion of the proceeds may be structured as an earn-out, paid if the practice hits future performance targets. You may also have the chance to “roll over” equity and become a shareholder in the larger company. These structures can provide significant upside, but you need to understand the risks and rewards of each.