If you own a hospice or geriatric practice in San Diego, you are in a strong position. The demand for your services is growing rapidly. Deciding to sell is a major step, and navigating the process correctly is critical to capitalizing on the value you have built. This guide provides a clear overview of the market, key considerations, and the steps involved. Proper preparation is the foundation of a successful and rewarding transition.
Market Overview
The timing for selling a hospice and geriatric practice in San Diego is exceptional. The market is supported by powerful demographic tailwinds. San Diego s senior population is on track to reach nearly one million by 2030. This represents an 80% increase since 2010. This local trend mirrors the national one. The U.S. hospice market is expanding steadily, with a projected growth rate of over 4.6% annually. For practice owners, this combination of local demand and national market strength creates a uniquely valuable opportunity. Strategic buyers are actively seeking quality practices in high-growth regions like San Diego to meet this rising need.
Key Considerations for Your Practice
Beyond the numbers, a buyer is purchasing the unique story and operational strengths of your practice. When preparing for a sale, how you position these elements is critical.
Your Comprehensive Service Model
Buyers are attracted to practices that offer a continuum of care. If you provide both geriatric and hospice services, this integrated model is a significant asset. It demonstrates a deep relationship with the patient community and creates multiple revenue streams. We help you frame this comprehensive service as a key strategic advantage.
Your Reputation for Quality Care
In a competitive market like San Diego, your reputation is a tangible asset. Positive patient outcomes, strong physician referral networks, and a dedicated staff all contribute to your practice’s goodwill. Translating this reputation into a specific valuation number is a key part of the M&A process.
Your Position in the Market
San Diego has an established landscape of providers. Your specific niche, payer contracts, and patient demographics define your strategic position. Understanding how your practice fits into the larger ecosystem is necessary to attract the right type of buyer who sees value in your specific footprint.
Market Activity
The hospice and geriatric care sector is attracting significant attention from sophisticated investors. Private equity (PE) firms, in particular, have become the most active buyers. They currently account for three-quarters of all hospice transactions. This level of interest is a strong indicator of the sector’s health and profitability. For a practice owner, this means your potential buyer is likely to be a well-capitalized, experienced dealmaker looking for strategic platforms. While this can lead to premium valuations, it also means you will be negotiating with experts. Running a professional process is no longer optional. It is the only way to ensure you receive a fair offer and favourable terms.
The Sale Process
A successful sale does not happen by accident. It follows a structured, confidential process designed to protect your interests and maximize value. Many owners think they should only start this process when they are ready to exit. The most successful transitions begin years in advance. The core stages generally include:
- Preparation and Valuation. This is the foundational step where we help you understand your practice’s true worth. We analyze your financials, normalize earnings, and prepare a compelling narrative for buyers.
- Confidential Marketing. We identify and discreetly approach a curated list of qualified strategic and financial buyers from our proprietary database. Your identity remains confidential throughout this stage.
- Negotiation of Offers. By creating a competitive environment with multiple interested parties, we drive up the valuation and improve the terms of the deal, putting you in control.
- Due Diligence and Closing. This is where many deals fail without expert management. We oversee the buyer’s deep review of your practice to prevent surprises and ensure a smooth path to the closing table.
Determining Your Practice’s Value
Valuing your medical practice is more than just a formula. While most transactions are based on a multiple of your earnings, determining the right numbers is a detailed process. The key metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your profit by adding back owner-specific expenses, such as an above-market salary or personal car lease, to show a buyer the true cash flow of the business. The multiple applied to that Adjusted EBITDA is then influenced by factors like the scale of your practice, your reliance on a single provider, and your documented growth history. Getting this right is the difference between an average offer and a premium one.
Planning for Life After the Sale
The transaction itself is not the end of the journey. A successful exit strategy includes a clear plan for what comes next, both for you and for the practice you built. The best deals are structured to meet your personal and financial goals long after the papers are signed. Many owners fear a loss of control, but a well-structured partnership can preserve your clinical autonomy while providing the resources for growth. Thinking through these areas beforehand is a critical part of the process.
| Post-Sale Area | Why Planning Matters |
|---|---|
| Your Future Role | Defines your involvement, from a clean exit to continued leadership. |
| Staff & Legacy | Provides security for your team and protects the culture you built. |
| Financial Structure | Directly impacts your after-tax proceeds and future wealth. |
Frequently Asked Questions
Why is now a good time to sell a hospice or geriatric practice in San Diego?
The demand for hospice and geriatric services in San Diego is growing rapidly due to demographic trends. The senior population is expected to increase by 80% by 2030, matching a national growth trend. This creates strong market demand and makes now an exceptional time to sell.
What factors influence the value of my hospice or geriatric practice?
Practice value is influenced by Adjusted EBITDA, which normalizes profits by adjusting for owner-specific expenses. Other factors include your practice’s scale, dependence on single providers, growth history, comprehensive service models, reputation for quality care, and strategic position in the market.
Who are the typical buyers for hospice and geriatric practices in San Diego?
Private equity firms are the most active buyers in this sector, accounting for about three-quarters of all hospice transactions. These buyers are well-capitalized and experienced, looking for strategic platforms in high-growth areas like San Diego.
What are the main steps involved in selling my practice?
The sale process typically involves:
1. Preparation and valuation to understand your practice’s worth.
2. Confidential marketing to attract qualified buyers.
3. Negotiation of offers to maximize price and terms.
4. Due diligence and closing to finalize the deal smoothly.
What should I consider in planning life after selling my practice?
Planning for life post-sale includes deciding your future role (clean exit or continued leadership), securing staff and preserving the culture you built, and structuring the financial aspects to optimize your after-tax proceeds and long-term wealth.