Guide to Selling a Hospice & Geriatric Practice in Georgia

The market for hospice and geriatric care in Georgia is strong, driven by a growing elderly population and increasing demand for specialized services. For practice owners, this presents a significant opportunity. However, navigating the sale process requires careful planning to achieve the best outcome. This guide provides a clear overview of the market, key steps, and what you need to know to position your practice for a successful transition.

Market Overview

Georgias demographic trends are creating a robust environment for hospice and geriatric practices. The demand for end-of-life and long-term care is expanding, driven by an aging population. This has attracted significant interest from buyers, from other healthcare systems to private equity groups. If you’re a practice owner, understanding the landscape is the first step.

Here are three key trends shaping the Georgia market right now:

1. Sustained Market Growth. The national hospice market is growing at over 4.5% annually. Georgia’s long-term care market is projected to hit $259 million in 2025. This momentum means buyers are actively looking for established, quality practices to acquire.
2. Increased Spending. Medicare spending on hospice care has grown tenfold, reaching over $23 billion. This reliable reimbursement stream makes practices like yours a stable and attractive asset for buyers.
3. A Shift in Ownership. We are seeing a clear trend of new hospices being established as for-profit entities. This brings a different type of buyer to the table, one who is often more experienced in M&A and focused on operational efficiency.

Key Considerations

While the market is strong, selling a healthcare practice in Georgia has unique complexities. You should be aware that a Georgia hospice license is not transferable. A buyer cannot simply take over your existing license. They must apply for a new one, a process that must be managed carefully to ensure a smooth transition of operations and patient care without any gaps.

Beyond licensing, a buyer will conduct deep due diligence into your financials, staffing, and referral sources. They want to see a clean, well-run operation. If you have partners, a clear buy-sell agreement is also important. Anticipating these requirements and preparing for them ahead of time is one of the best ways to protect your practice’s value during a sale.

Market Activity

The M&A market in Georgia is active. We are seeing established hospice and geriatric practices command significant attention from a range of buyers. Private equity firms, in particular, are heavily invested in the hospice space, often accounting for a majority of transactions. They are drawn to the stable demand and opportunities for growth. For you, this means there is likely a pool of qualified, well-capitalized buyers looking for a practice just like yours. This competition is a key driver of strong valuations.

Understanding these dynamics can help you position your practice effectively.

The Sale Process

Selling your practice is not a single event. It is a structured process with several distinct phases. Knowing what to expect can help you prepare and stay in control. While every transaction is unique, a successful sale typically follows a clear path.

We see the journey in four key phases.

1. Preparation and Strategy. This is where we work with you to understand your goals, prepare your financial documents, and create a compelling story about your practice’s strengths and growth potential.
2. Marketing and Buyer Engagement. We confidentially introduce your practice to a vetted pool of qualified buyers. We manage all communications to generate competitive interest while protecting your identity and the day-to-day operations of your practice.
3. Negotiation and Structuring. After receiving offers, we help you analyze them not just on price, but on terms, structure, and fit. Our goal is to secure a deal that meets your financial and personal objectives.
4. Due Diligence and Closing. This is the final stage where the buyer verifies all information. We manage this intensive process to prevent surprises and keep the deal on track toward a successful closing.

Valuation

Determining what your practice is truly worth is one of the most important steps. Its more than a rule of thumb. While some buyers look at a per-patient value, a sophisticated valuation focuses on your practice’s true cash flow. We start by calculating your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This process normalizes your financials by adding back personal expenses or one-time costs to show a buyer the real profitability of the business. This number is then multiplied by a figure based on factors like your size, referral relationships, and growth trajectory. Getting this calculation right is the foundation of a successful sale. Many practice owners are surprised to learn how much value is uncovered in this step alone.

Post-Sale Considerations

The work isn’t over once you agree on a price. Planning for what comes after the sale is critical for a smooth transition and for securing your financial future. A good deal structure considers more than just the closing day.

Protecting Your Legacy and Staff

For many owners, ensuring their staff is cared for and that their patients continue to receive high-quality care is a top priority. These terms can be negotiated as part of the sale agreement. Finding a buyer whose culture aligns with yours is often just as important as the final price.

Structuring Your Payout

Your proceeds are not always delivered in a single lump sum. Deal structures often include elements like an equity rollover, where you retain a minority stake in the new, larger company. This gives you a “second bite of the apple” when that company sells again. An earnout, where a portion of the price is tied to future performance, is also common. We can help you weigh the risks and rewards of these structures.