If you are a Fertility & IVF practice owner in Buffalo, NY, the thought of selling your practice involves major personal and financial decisions. This guide will walk you through the current market landscape, key considerations, and the valuation process. Understanding your options is the first step toward a successful transition, whether you plan to sell in one year or five. Navigating this path requires a clear strategy based on solid information.
Market Overview
The decision to sell doesn’t happen in a vacuum. It is heavily influenced by market conditions. Here is what we are seeing right now.
The National Climate for Fertility M&A
After a very active 2022, the market for fertility practices saw a brief slowdown in early 2023. Higher interest rates made buyers more cautious. However, momentum is returning. Sophisticated buyers and private equity groups remain highly interested in the fertility sector due to its strong growth fundamentals. They are actively looking for high-quality practices to partner with. This shifting dynamic means that while buyers are selective, they are prepared to move decisively for the right opportunity.
The Buffalo, NY Landscape
While specific M&A data for Buffalo is often private, we can see positive signs in the local market. The recent expansion of practices like Your Family Fertility shows there is confidence and growth in the regional demand for services. For a practice owner in Buffalo, this indicates a healthy, stable environment. National buyers are increasingly looking to enter or expand in strong regional markets like Western New York, creating new potential for local IVF practice owners.
Key Considerations
Beyond market trends, your personal and professional goals are the most important factors. The most common mistake we see is waiting too long to sell. The best time to start the conversation is when your practice is performing at its peak, not when you are already feeling burnt out and ready to retire. Buyers pay for proven success, not future potential. Starting the planning process two or three years before your desired exit date gives you the power to sell on your terms. You should also be prepared for a transition. Many buyers will want you to stay on for a period to ensure a smooth handover for patients and staff, which protects the legacy you have built.
Market Activity
Valuations in the fertility sector have shifted but remain strong. After the record highs of 2022, the market has settled. today’s buyers are more focused on profitability and operational efficiency. This is not a weakness in the market. It is a flight to quality. It means that well-run, profitable IVF practices in a stable market like Buffalo are still in high demand.
Here is a general look at how buyers are valuing practices based on a multiple of Adjusted EBITDA (a measure of cash flow):
- For one or two-physician practices: Multiples are typically in the high single digits (e.g., 7x to 9x Adjusted EBITDA).
- For larger, multi-physician operations: We are seeing multiples in the low to mid-teens (e.g., 10x to 14x Adjusted EBITDA).
The key takeaway is that strategic buyers are willing to pay a premium for scale, a strong management team, and a healthy patient base.
The Sale Process
Selling your practice is not a single event. It is a structured process designed to protect your confidentiality and maximize your outcome. It generally begins with a professional valuation to establish a credible asking price. From there, we would confidentially approach a curated list of qualified buyers. Once interest is confirmed, the most intense phase begins: due diligence. This is where the buyer and their advisors examine every aspect of your practices finances, operations, and legal standing. Proper preparation here is critical to prevent delays or surprises. The process concludes with negotiating the final sale agreement and planning for a successful transition.
Valuation
A professional valuation is the foundation of a successful sale. Most practice owners are surprised to learn their practice is worth much more than they think. That is because buyers do not value your practice based on net income. They use a metric called Adjusted EBITDA, which represents the true cash flow of the business. We uncover this value by “normalizing” your financials, adding back personal expenses or one-time costs.
Buyers don’t just buy numbers. They buy stories. Your reputation, patient base, and location in Buffalo all contribute to the final value.
Here is a simplified example of how it works:
| Financial Item | Amount | Description |
|---|---|---|
| Reported Net Income | $500,000 | The “on paper” profit. |
| Add back: Owner Perks | +$50,000 | Personal travel expenses run through the business. |
| Add back: Salary Adj. | +$150,000 | The amount of owner salary above market rate. |
| Adjusted EBITDA | $700,000 | The true cash flow a buyer is purchasing. |
This adjusted number, not the net income, is what a buyer will apply a multiple to. Getting this calculation right is the difference between an average and a premium valuation.
Post-Sale Considerations
The work is not over once the deal closes. How your sale is structured has significant consequences for your financial future. The proceeds from selling your practice are subject to capital gains taxes, which can be substantial. The right deal structure, planned in advance, can have a major a impact on your after-tax return. You also need to consider your legacy. What will happen to your dedicated staff? How will your patients be cared for? These elements can be protected in the sale agreement. Finally, you must plan for your own next chapter. This could involve staying on with the practice, pursuing other interests, or simply enjoying a well-earned retirement. Thinking through these options is a key part of a successful exit.
Frequently Asked Questions
What are the current market conditions for selling a Fertility & IVF practice in Buffalo, NY?
The market has seen a brief slowdown in early 2023 due to higher interest rates, but momentum is returning. Sophisticated buyers and private equity groups remain very interested in high-quality fertility practices. Buffalo shows positive regional growth and interest from national buyers, indicating a healthy and stable market.
When is the best time to start planning the sale of my Fertility & IVF practice?
The best time to start planning your sale is two to three years before your desired exit date, ideally when your practice is performing at its peak. Buyers pay for proven success, so starting early gives you the power to sell on your terms and avoid waiting until burnout or retirement.
How are Fertility & IVF practices in Buffalo typically valued?
Practices are valued based on a multiple of Adjusted EBITDA (cash flow). For one- or two-physician practices, multiples range from 7x to 9x; for larger, multi-physician practices, multiples are usually 10x to 14x. Strategic buyers pay premiums for scale, strong management, and a healthy patient base.
What does the sale process for a Fertility & IVF practice involve?
The sale process includes obtaining a professional valuation, confidentially approaching qualified buyers, undergoing due diligence to examine finances and operations, negotiating the sale agreement, and planning a smooth transition that may include the owner staying on temporarily to protect staff and patient care.
What post-sale considerations should I be aware of after selling my Fertility & IVF practice?
After the sale, consider the tax implications like capital gains tax and plan your deal structure accordingly to maximize after-tax returns. Also, consider protecting your staff and patient care in the sale agreement and plan your next steps, whether staying involved, pursuing other interests, or retirement.