The market for fertility services is expanding, driven by increasing demand and significant investor interest. For owners of Fertility & IVF practices in New Mexico, this climate presents a unique window of opportunity. Selling your practice is more than a transaction. It’s a major life decision that requires careful planning to protect your legacy and maximize your financial outcome. This guide provides a look at the current market, key considerations for selling, and the steps involved in navigating a successful sale.
Curious about what your practice might be worth in today’s market?
Market Overview
The national outlook for fertility and IVF services is exceptionally strong. The global market is projected to grow significantly over the next decade, and this momentum is attracting attention from sophisticated buyers, including private equity firms looking to invest in high-performing practices.
A Booming National Market
Across the U.S., the number of IVF cycles performed each year continues to rise, reflecting a durable and growing need for fertility care. This foundational demand makes the sector resilient and highly attractive to investors who are actively consolidating practices to build larger, more efficient networks. This trend provides a powerful tailwind for practice owners considering a sale.
The New Mexico Opportunity
While specific data on private practice sales in New Mexico is not always public, the state benefits from the same national trends. Buyers see the potential in established local practices like those in Albuquerque and Santa Fe. The key is understanding how to position your practice to attract these national-level buyers who may not be visible through local channels. The lack of public information makes expert guidance even more important for accessing the right opportunities.
Key Considerations for a Successful Sale
Beyond favorable market conditions, a successful sale depends on careful preparation. For a specialized Fertility & IVF practice, buyers will look closely at factors that go far beyond your basic financial statements. Your practices reputation, which is built on verifiable success rates reported through SART and the CDC, is a primary driver of value. You also need to navigate New Mexicos specific healthcare regulations, such as the Medical Practice Act, to ensure a compliant transfer of ownership. Finally, planning for the transition of your role and the retention of your skilled clinical and lab staff is critical for ensuring continuity of care and securing buyer confidence. Addressing these areas proactively is a key step in preparing for a smooth process.
Market Activity
The primary activity in the fertility market today is consolidation. This is driven by two main types of buyers who are actively seeking practices like yours.
Who is Buying Fertility Practices?
- Private Equity Groups: These investment firms see fertility as a high-growth medical specialty. They acquire practices to provide capital and business support, often creating regional or national platforms.
- Strategic Acquirers: These are larger, established fertility networks or hospital systems looking to expand their geographic footprint and patient base by acquiring successful local practices.
Although you may not see “For Sale” signs, these buyers are constantly and confidentially evaluating opportunities. The most competitive deals are almost always sourced through private, advisor-led processes, not public listings. An advisor with a proprietary database of these active buyers can create a competitive environment to drive up value and improve terms.
The Sale Process
Selling your practice follows a structured path designed to protect your confidentiality and maximize your outcome. It generally begins with a confidential assessment to understand your practice’s market value. From there, we help prepare a detailed overview that highlights your practices strengths, financials, and growth potential. This information is then shared discreetly with a curated list of qualified, vetted buyers under strict non-disclosure agreements. We manage buyer inquiries, coordinate meetings, and solicit offers to create competitive tension. Once an offer is accepted, the process moves into a formal due diligence phase, where the buyer verifies all information. This stage is where many unguided deals encounter problems, but with proper preparation, it can be a smooth confirmation of value before moving to the final closing.
Preparing properly for buyer due diligence can prevent unexpected issues.
How Your Practice is Valued
Determining your practices worth isn’t based on a simple “rule of thumb.” The valuation of a modern medical practice is a sophisticated process. It starts with calculating your Adjusted EBITDA, which represents your true cash flow after normalizing for owner-specific expenses and non-recurring costs. A valuation multiple is then applied to this figure. For a Fertility & IVF practice, that multiple is heavily influenced by specific qualitative factors. A higher multiple isn’t just about profit. It’s about the quality and defensibility of that profit.
| Factor | Impact on Value |
|---|---|
| High, Verifiable Success Rates | Significantly increases the multiple. This is a key performance indicator. |
| Strong Provider Team | Reduces reliance on a single owner, lowering buyer risk and raising value. |
| Diverse Service Offerings | Practices with ancillary services (e.g., egg freezing, genetics) are more valuable. |
| Modern Lab & Technology | Up-to-date equipment and lab facilities are critical and command a premium. |
A professional valuation frames the narrative around these strengths, ensuring buyers see the full picture and justifying a premium valuation for your years of hard work.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Post-Sale Considerations
Finalizing the sale is not the end of the journey. Planning for what comes next is crucial for a truly successful transition. Your role after the sale is a key point of negotiation. Most buyers will want you to stay on for a period, typically one to three years, to ensure a smooth handover of patient relationships and operational knowledge. The structure of this transition is flexible and should be designed to meet your personal goals. Equally important is protecting your team. The sale can be structured to provide security and opportunities for your key staff, which helps preserve the practice’s culture and legacy. Finally, the structure of your deal, including any potential earnouts or retained equity, has massive implications for your after-tax proceeds and future wealth.
The right exit approach depends on your personal and financial objectives.
Frequently Asked Questions
What makes the Fertility & IVF market attractive for selling a practice in New Mexico?
The national fertility and IVF market is booming with increasing demand and investor interest. New Mexico benefits from the same strong trends with buyers, including private equity and strategic acquirers, looking to invest in established local practices. This creates a unique opportunity for practice owners to sell in a favorable market.
What key factors do buyers consider when valuing a Fertility & IVF practice in New Mexico?
Buyers look beyond basic financials to factors such as verifiable high success rates reported through SART and the CDC, a strong provider team reducing owner reliance, diverse service offerings like egg freezing and genetics, and modern lab & technology facilities. These elements can significantly increase the valuation multiple applied to the practice’s Adjusted EBITDA.
Who are the typical buyers interested in acquiring Fertility & IVF practices in New Mexico?
Typical buyers include private equity groups seeking high-growth medical specialties to build regional or national platforms, and strategic acquirers like larger fertility networks or hospital systems aiming to expand their geographic footprint by acquiring successful local practices. These buyers often operate confidentially through advisors.
What are important steps in the sales process for a Fertility & IVF practice?
The sales process usually starts with a confidential assessment of the practice’s value, followed by preparing detailed information about strengths and financials. This is shared with qualified buyers under NDA. The seller manages inquiries and solicits offers to create competitive tension, then moves to due diligence where the buyer verifies information before final closing. Proper preparation is key to avoiding issues during due diligence.
What should practice owners consider about their role and team after selling their Fertility & IVF practice?
Post-sale, most buyers want the owner to stay on for one to three years to ensure smooth transition of patient care and operations. Sellers should negotiate the structure to align with personal goals. Protecting key clinical and lab staff is important to maintain the practice culture and legacy. Deal structure elements like earnouts or retained equity can significantly affect after-tax proceeds and future wealth.
