The demand for hospice and geriatric care is strong and getting stronger. Nationally, the hospice market is valued at nearly $30 billion and is projected to grow steadily. A key factor is that an estimated 70% of adults over 65 will require some form of long-term care in their lifetime.
This national trend is amplified here in Florida. Tampa sits at the heart of a state known for its large and growing senior population. This demographic reality creates a stable, high demand environment for practices focused on end-of-life and geriatric care. For practice owners, this translates into a marketplace with a deep pool of potential buyers looking for well-run operations in a prime location.
Key Considerations
Beyond market trends, a successful sale depends on careful planning. Thinking through these areas early can significantly impact your final outcome.
Your Timeline and Goals
Many owners think they should only start planning when they are ready to sell. The reality is that preparation should begin 2-3 years in advance. This allows you to position the practice to attract the best offers and gives you time to align the sale with your personal and financial goals, whether that means a full exit or a continued role.
Finding the Right Buyer
The best buyer isn’t always the one with the highest offer. It’s about finding a partner who will protect your legacy, care for your staff, and maintain the quality of patient care you’ve established. This requires a process designed to identify buyers whose values align with yours, not just a public listing.
Financial Health and Story
Buyers don’t just buy a practice. They buy future cash flow. Your financial records need to be clean, organized, and tell a compelling story of stability and growth. Preparing this presentation is a critical step that happens long before you go to market.
Market Activity
The M&A market for healthcare practices is dynamic. After a slowdown caused by higher interest rates, activity in the hospice sector is expected to increase. As market conditions improve, strategic buyers and private equity groups are becoming more active, seeking quality practices to add to their platforms.
For Tampa practice owners, this signals a favorable window of opportunity. Buyers are looking for well-managed, profitable hospice and geriatric practices in high-growth areas. However, this increased interest also means they are more sophisticated. Presenting your practice professionally and running a structured sale process is the key to creating competitive tension and achieving a premium valuation in this evolving market.
The Sale Process
Selling a practice follows a structured path. While every sale is unique, the journey generally includes these four phases.
- Preparation and Valuation. This is the foundational step. We work with owners to analyze financials, understand the practice’s true earning power, and determine its market value before ever speaking to a buyer.
- Confidential Marketing. Your practice is presented confidentially to a curated list of qualified buyers. This protects your staff and reputation while creating a competitive environment.
- Negotiation and Due Diligence. After initial offers are received, we help you negotiate the best terms. The buyer then conducts due diligence, a thorough review of your operations and financials. This stage is where expert guidance is critical to prevent surprises.
- Closing and Transition. The final phase involves legal documentation and the official transfer of ownership. A well-managed process ensures a smooth transition for you, your staff, and your patients.
The due diligence process is where many practice sales encounter unexpected challenges.
How Your Practice is Valued
Determining your practice9s value is not as simple as looking at last year’s profit. Sophisticated buyers use a formula based on Adjusted EBITDA, or your true cash flow after normalizing for owner-specific expenses. This adjusted profit is then multiplied by a number (a “multiple”) that reflects your practice’s risk and growth potential. Factors like size, provider dependence, and growth rate all influence this multiple. A simple “rule of thumb” will almost always undervalue a well-run practice.
Proper valuation is a mix of financial analysis and strategic storytelling. Here is how we approach it to find the true value.
| Service | How We Help You |
|---|---|
| Normalization | We create a true EBITDA baseline by adjusting for owner perks and other items. |
| Market Comps | We use our database of real transactions to find the right multiple for you. |
| Narrative Framing | We help craft a compelling growth story that buyers are willing to pay for. |
| Pre-Sale Prep | We help fix operational issues before you go to market to increase your value. |
Post-Sale Considerations
A successful sale is not just about the price you get at closing. It’s about structuring a deal that works for your future. You should consider what role, if any, you want to have in the practice moving forward. Some owners stay on for years, while others prefer a clean break. The structure of the sale also has major financial implications. A deal can be structured with elements like an earnout or rollover equity, which can offer significant upside but require careful planning. Most importantly, a thoughtful plan ensures your staff and patients are cared for, protecting the legacy you spent years building. The right advisory partner helps you think through these options from the very beginning.
The structure of your practice sale has major implications for your after-tax proceeds.
Frequently Asked Questions
What is the current market outlook for selling a hospice and geriatric practice in Tampa, FL?
The hospice market is valued at nearly $30 billion nationally and is projected to grow steadily due to the increasing senior population, especially in Florida. Tampa, with its large and growing senior demographic, offers a high-demand environment for these practices. Market activity is expected to increase as strategic buyers and private equity groups become more active.
When should I start planning to sell my hospice and geriatric practice in Tampa?
Preparation should begin 2-3 years in advance of the sale. Early planning allows you to position your practice to attract the best offers and align the sale with your personal and financial goals. It also helps in organizing financial records and fixing operational issues before going to market.
How is my hospice and geriatric practice valued for sale?
The valuation is based on Adjusted EBITDA, which reflects your true cash flow after normalizing for owner-specific expenses, multiplied by a factor representing the practice’s risk and growth potential. Factors influencing this multiple include practice size, provider dependence, and growth rate. A proper valuation combines financial analysis with strategic storytelling.
What are the key phases in the sale process of a hospice and geriatric practice?
The sale process generally includes four phases: 1) Preparation and Valuation, 2) Confidential Marketing to a curated list of buyers, 3) Negotiation and Due Diligence where terms are finalized, and 4) Closing and Transition involving legal documentation and ownership transfer to ensure a smooth handover.
What should I consider about my role and deal structure post-sale?
Post-sale considerations include deciding whether to stay involved in the practice or make a clean break. Deal structures can include earnouts or rollover equity, impacting your after-tax proceeds and future income. It’s important to plan for staff and patient care to protect your legacy. Consulting with an advisory partner early can help navigate these decisions.