The market for gastroenterology and hepatology practices in Indianapolis is active. Accelerated consolidation and strong interest from private equity (PE) firms and health systems have created unique opportunities for physician-owners like you. Selling your practice is a major decision that requires a clear understanding of market dynamics, valuation, and your own long-term goals. This guide provides insights to help you navigate the process and achieve a successful transition on your terms.
Curious about what your practice might be worth in today’s market?
Market Overview
Right now, the Indianapolis healthcare market is experiencing aggressive competition. Private equity groups and large health systems are actively seeking to partner with or acquire high-quality GI and hepatology practices. They are drawn to the specialty’s stable revenue streams and the potential for growth. This has fueled a wave of consolidation, where independent practices join larger platforms. We saw this happen locally when Indianapolis Gastroenterology and Hepatology, a major private group, joined the PE-backed GI Alliance. This trend is changing the landscape, making it important for independent owners to understand their strategic options in a market that favors scale.
Key Considerations for Your Practice
As you think about a sale, the financial number is only one part of the story. The right deal aligns with your personal and professional goals. From our experience, these are the areas that matter most to physician-owners.
Protecting Your Clinical Autonomy
A major concern for many physicians is losing control over patient care. The key is to know that control isn’t an all-or-nothing prospect. The right partner will value your clinical expertise, and a well-structured deal can build in protections that allow you to continue practicing medicine your way.
Finding the Right Cultural Fit
Your practice has a unique culture you27ve spent years building. Will a new partner respect that? It’s important to evaluate a potential buyer27s values and operating philosophy to ensure they align with your commitment to your patients and staff.
Leveraging Your Ancillary Services
Do you have an in-house endoscopy or infusion center? These ancillary services are major value drivers. They create efficient, integrated patient care and represent significant profitability, which makes your practice much more attractive to sophisticated buyers and can increase your valuation.
Every practice sale has unique considerations that require personalized guidance.
Market Activity and Demand
The opportunities in the Indianapolis market are fueled by strong demand. With over two-thirds of U.S. counties lacking a gastroenterologist and regional health systems serving over 100,000 patients annually, your practice provides a critical service. This demand has not gone unnoticed. Private equity investment in the GI space has grown very fast, with the number of PE-backed platforms increasing from just a handful to over 30 in a few short years. This activity means more well-capitalized buyers are competing for a limited number of high-quality independent practices. For a seller, this competition can lead to premium valuations and more favorable deal terms.
The Sale Process Unpacked
Selling a medical practice isn27t a single event. It27s a structured process. Many owners think they should wait until they are 100% ready to sell to start planning. Actually, the best time to begin preparing is one to two years before you want to transact. This gives you time to get your practice in order and sell on your terms. Here27s how we see the typical journey.
- Valuation and Preparation. This first step involves understanding what your practice is truly worth and packaging its story for buyers. We clean up financial statements and develop a compelling narrative about your growth potential.
- Confidential Marketing. We identify and discreetly approach a curated list of qualified strategic and financial buyers without your name ever becoming public. This creates competitive tension to drive up value.
- Negotiation and Structuring. We help you compare offers not just on price, but on terms like autonomy, staff retention, and future equity, ensuring the final deal matches your goals.
- Due Diligence and Closing. This is where buyers verify everything. Being prepared here is critical. We manage the flow of information to prevent surprises and keep the process moving smoothly toward a successful closing.
The due diligence process is where many practice sales encounter unexpected challenges.
How Your Practice is Valued
One of the first questions owners ask is, 22What is my practice worth?22 Simple revenue multiples are outdated and often misleading. Sophisticated buyers value your practice based on a key metric: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true, sustainable cash flow. We calculate it by taking your reported profit and adding back owner-specific expenses, like a higher-than-market salary or personal car lease. For many practices, this process can significantly increase the baseline earnings number. That adjusted number is then multiplied by a figure based on market demand and risk. A multi-provider practice with a strong referral base and its own endoscopy center will get a much higher multiple than a solo practice reliant on a single physician.
Valuation multiples vary significantly based on specialty, location, and profitability.
Planning for Life After the Sale
A successful transition is defined by what happens long after the papers are signed. Your legacy, your team27s future, and your own next chapter are all part of the equation. Thinking through these elements beforehand is key to structuring a deal you will be happy with for years to come. The right partner will work with you to plan for these critical areas.
| Post-Sale Consideration | Key Question to Ask | Why It Matters for Your Future |
|---|---|---|
| Your Evolving Role | What will my schedule and clinical responsibilities look like? | This defines your day-to-day satisfaction and work-life balance post-transaction. |
| Staff Security | What commitments will the new partner make to my team regarding their jobs and benefits? | This protects the people who helped you build the practice and ensures continuity of care. |
| The “Second Bite” | Can I roll over a portion of my sale proceeds into equity in the new, larger company? | An equity rollover allows you to benefit from the future growth of the platform, often leading to a second, larger payout down the road. |
Not sure if selling is right for you? Our advisors can help you understand your options without any pressure.
Frequently Asked Questions
What is the current market outlook for selling a GI & Hepatology practice in Indianapolis?
The Indianapolis market for GI & Hepatology practices is very active, with strong demand driven by private equity firms and health systems. These buyers seek stable revenue streams and growth opportunities, creating favorable conditions for sellers including consolidation trends that benefit independent practices.
How is the value of my GI & Hepatology practice determined?
Valuation is primarily based on Adjusted EBITDA, which adjusts your reported profit by adding back owner-specific expenses like above-market salaries. This adjusted earnings figure is multiplied by a factor reflecting market demand, risk, and practice specifics like specialty, location, profitability, referral base, and ancillary services such as endoscopy centers.
How can I ensure I maintain clinical autonomy after selling my practice?
Maintaining clinical autonomy is possible through carefully structured deals. The right buyer will respect your clinical expertise and a well-negotiated agreement can include protections that allow you to continue practicing medicine according to your standards without total loss of control.
What should I consider about my practice culture when selling?
It’s critical to find a buyer whose values and operating philosophy align with yours to preserve the unique culture you’ve built. Ensuring the new partner respects your commitment to patients and staff helps maintain the practice’s identity post-sale.
What are important post-sale considerations for a physician-owner?
Consider your evolving role and workload, the security and retention of your staff, and opportunities to roll over part of your sale proceeds into equity in the acquiring company. These factors affect your work-life balance, the future of your team, and potential long-term financial benefits after the transaction.