Selling your Fertility & IVF practice is a significant decision. In today’s market, it can also be a significant opportunity. With strong buyer demand and record growth in the fertility sector, now is a compelling time for Portland practice owners to explore their options. This guide provides key insights into the market, valuation, and process to help you navigate your transition with confidence and achieve your financial goals.
Market Overview
The U.S. fertility market is experiencing unprecedented growth, projected to more than double from $7.9 billion in 2022 to $16.8 billion by 2028. This national tailwind creates a very favorable environment for practice owners in Portland. The city’s demographic of educated, dual-income households often delays family planning, which sustains strong local demand for fertility services. For practice owners, this translates into a seller’s market where well-run clinics are attractive acquisition targets for both strategic buyers and private equity groups looking to enter the thriving Pacific Northwest.
Key Considerations for Portland Sellers
Beyond the numbers, selling a high-value practice like a fertility clinic involves unique personal and operational factors. A successful transition depends on thinking through these points early in the process.
Protecting Your Legacy and Team
Your practice is more than a balance sheet. It represents your life’s work and a dedicated team, including highly specialized embryologists and clinical staff. The right buyer will understand and want to preserve this culture and expertise. Finding a partner who aligns with your clinical philosophy is critical for both staff retention and your peace of mind.
Navigating Different Buyer Types
The market includes various buyers, from local hospital systems to national fertility networks and private equity firms. Each has different goals, deal structures, and operational styles. A hospital might prioritize integration, while a private equity partner may offer resources for expansion while you retain clinical control. Understanding these differences is key to finding the right fit for your personal and financial objectives.
Your legacy and staff deserve protection during the transition to new ownership.
Market Activity
A major trend driving the fertility M&A landscape is consolidation by private equity (PE). PE firms see fertility as a high-growth, recession-resistant field with opportunities to build larger, more efficient platforms. For Portland practice owners, this is good news. It creates a competitive environment where multiple sophisticated buyers are actively seeking to acquire practices like yours. This competition can significantly drive up valuations. However, it also means you will be negotiating with experienced dealmakers. A well-managed and confidential sale process is the best way to leverage this interest and ensure you receive the best possible terms, not just the first offer that comes along.
Understanding Your Practice’s Value
Valuing a fertility practice is more complex than applying a simple rule of thumb. Sophisticated buyers value your practice based on its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which is a measure of your true cash flow. This figure is calculated by adding back owner-specific and one-time expenses to your net income. That Adjusted EBITDA figure is then multiplied by a valuation multiple. This multiple is not fixed. It changes based on several key factors.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Solo physician dependent | Multiple associate physicians |
| Growth | Stable or flat revenue | Consistent year-over-year growth |
| Service Mix | Primarily basic services | Ancillary services (e.g., genetics, lab) |
| Clinic Scale | Single location, <$1M EBITDA | Multi-site, >$3M EBITDA platform |
Getting this calculation right is the foundation of a successful sale. A professional valuation process uncovers the true earning power of your practice and frames its story to achieve the highest possible multiple.
A comprehensive valuation is the foundation of a successful practice transition strategy.
The Sale Process
The path from deciding to sell to closing the deal involves several distinct phases. The process often begins 12-24 months before a sale with strategic preparation to ensure your financials and operations are ready for buyer scrutiny. This is followed by a confidential valuation. Once value is established, your advisor will discreetly market the opportunity to a curated list of qualified buyers, creating a competitive environment. After initial offers are received, you will move into negotiation, due diligence, and final contract execution. The due diligence phase is particularly critical. This is when the buyer verifies all financial, operational, and legal aspects of your practice. Thorough preparation is the key to a smooth diligence process and preventing unexpected challenges that could jeopardize your deal.
Post-Sale Considerations
A successful transaction is not just about the price you get. It is also about how the deal is structured to support your goals after closing. Planning for your post-sale life is a critical, yet often overlooked, part of the process.
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Defining Your Future Role. Do you want to retire immediately, or continue practicing for a few years with less administrative burden? Partnership deals often include an employment agreement, while an equity rollover can provide you with a stake in the new company’s future success. Defining this role upfront is essential.
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Optimizing Your Tax Structure. The way your sale is structured1as an asset sale or stock sale1has massive implications for your after-tax proceeds. Proper planning with an experienced advisor can help minimize your tax burden, potentially saving you hundreds of thousands of dollars.
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Managing Your Proceeds. The sale will likely be the largest liquidity event of your life. Having a trusted team of financial and wealth advisors in place before the close is important to ensure your newfound capital is managed wisely to support you and your family for decades to come.
The structure of your practice sale has major implications for your after-tax proceeds.
Frequently Asked Questions
Why is now a good time to sell my Fertility & IVF practice in Portland, OR?
The U.S. fertility market is experiencing record growth, projected to grow from $7.9 billion in 2022 to $16.8 billion by 2028. Portland’s demographic with educated, dual-income households delays family planning, sustaining strong demand for fertility services ‚Äî creating a seller’s market with strong buyer interest and attractive valuations.
What factors influence the valuation of my fertility practice?
Valuation is based on your practice’s Adjusted EBITDA (true cash flow) multiplied by a valuation multiple that varies based on factors including provider model (solo vs. multiple physicians), growth trends, service mix (basic vs. ancillary services), and clinic scale (single location vs. multi-site). A professional valuation uncovers the true earning power and maximizes your sale price.
Who are the typical buyers for a Fertility & IVF practice in Portland?
Buyers include local hospital systems, national fertility networks, and private equity (PE) firms. Each buyer type has different goals and deal structures — hospitals might seek integration, PE firms often look to expand while allowing you some clinical control — so understanding buyer profiles helps find the right fit for your goals.
What should I consider regarding my staff and legacy when selling my practice?
Protecting your practice’s culture and specialized team, including embryologists and clinical staff, is important. The right buyer will value and want to preserve your clinical philosophy which aids staff retention and provides peace of mind post-sale.
What steps are involved in the sale process of a fertility practice?
The process usually spans 12-24 months and includes strategic preparation, confidential professional valuation, discreet marketing to qualified buyers, negotiation, due diligence, and final contract execution. Thorough preparation, especially for due diligence, helps ensure smooth negotiations and prevent deal disruptions.
