Selling your neurology practice in Fort Lauderdale is a significant decision. The current market presents a compelling opportunity, driven by high demand for neurological services and an influx of sophisticated buyers. However, achieving your financial goals and securing your legacy requires more than just a willing buyer. Navigating this landscape successfully means understanding your practice’s true value, the local market dynamics, and the strategic steps that lead to a premium outcome. This guide provides the insights you need.
Market Overview
The decision to sell doesn’t happen in a vacuum. Market conditions in Fort Lauderdale create a unique environment for neurology practice owners right now.
National Demand
Nationally, the demand for neurologists is growing rapidly. An aging population and an increase in neurological conditions are expected to create a 19% gap in neurologist staffing by 2025. This scarcity makes established, efficient practices highly attractive to buyers who need to expand their footprint quickly.
The Fort Lauderdale Landscape
Fort Lauderdale is a mature and active healthcare market. With 326 neurologists, it’s clear that this is a desirable location for the specialty. While this indicates competition, it also signals a robust ecosystem that sophisticated buyers, like private equity groups and large health systems, are actively targeting for acquisition and partnership.
The Local Advantage
The presence of a Neurology Residency Program at Broward Health provides a pipeline of new talent. For a practice owner, this is a strategic advantage. It demonstrates the long-term viability of the location to a potential buyer, assuring them that clinical staff will be available for future growth.
Key Considerations for a Neurology Practice Sale
Beyond the market, a buyer will look closely at the specifics of your practice. Your practice’s structure and operations directly influence its attractiveness and final valuation. Here are a few things we see buyers focus on:
- Provider Structure. Is the practice’s success tied entirely to you, the owner? Or do you have associate physicians who drive revenue? Practices that are not dependent on a single person typically command higher valuations because they represent less risk to the new owner.
- Ancillary Services. Do you offer in-house diagnostics like EEG or EMG, or other related services? These create additional revenue streams that are highly valued by buyers. They show a diversified and resilient business model.
- Growth Story. Buyers don’t just purchase your past performance; they buy your future potential. We help you create a clear, data-backed narrative that shows a clear path for growth, whether through adding providers, opening a new location, or expanding services.
Current Market Activity
The opportunity in the Fort Lauderdale neurology market has not gone unnoticed. Activity is strong, driven by different types of buyers with unique goals. Understanding who is acquiring practices helps you position your own for the best possible outcome. Many owners think they should only start planning when they are ready to sell. Actually, the best time to start preparing is two to three years before your target exit date. This ensures you are negotiating from a position of strength.
| Buyer Type | Primary Motivation | What This Means for You |
|---|---|---|
| Private Equity Groups | Growth and efficiency. They build regional or national “platforms.” | Often results in higher valuations. You may have the option to retain equity. |
| Hospital Systems | Expanding their network and securing patient referrals. | Can provide stability and a strong local network for your patients and staff. |
| Strategic Competitors | Larger neurology groups looking to expand their local market share. | They understand the business but may offer a lower valuation than a PE firm. |
The Sale Process Unpacked
Selling a medical practice is a structured process, not a single event. When managed correctly, it unfolds in predictable phases. Each step is designed to protect you and maximize your outcome.
- Preparation and Positioning. This is where we work with you to clean up financials, organize key documents, and frame the story of your practice. This happens months before your practice is ever shown to a buyer.
- Professional Valuation. We conduct a detailed analysis to determine your practice’s market value, based on your finances, operations, and current market data. This sets a realistic and defensible price range.
- Confidential Marketing. Your practice is presented to a curated list of qualified buyers under strict confidentiality agreements. We manage all communications to protect your privacy and create a competitive environment.
- Due Diligence. The selected buyer will conduct a thorough review of your practice. This is often where deals fall apart due to surprises. Proper preparation from step one prevents this.
- Closing. The final phase involves legal documentation and the transfer of funds. Our role is to ensure the deal closes smoothly and on the terms agreed upon.
What Is Your Neurology Practice Really Worth?
Understanding your practice’s valuation is the foundation of a good exit strategy. It s less about simple rules of thumb and more about how a sophisticated buyer analyzes cash flow and future growth.
It Starts with Adjusted EBITDA
Buyers don’t look at the profit on your tax return. They look at Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents the true cash-generating power of your practice. We find this number by taking your stated net income and adding back owner-specific personal expenses, above-market owner salary, and other one-time costs. Most owners are surprised to learn their Adjusted EBITDA is much higher than their net income.
Applying a Multiple
This Adjusted EBITDA figure is then multiplied by a number called a “multiple” to get your practice’s enterprise value. This multiple isn’t random. It s determined by several factors:
* Scale: Larger practices with higher EBITDA get higher multiples.
* Risk: Practices that rely less on a single owner get higher multiples.
* Growth: A clear, believable growth plan gets a higher multiple.
For a healthy, multi-provider practice, multiples can often range from 5.5x to over 7.5x Adjusted EBITDA in today’s market. A proper valuation tells you exactly where you stand.
Planning for Life After the Sale
A successful sale isn t just about the price you get. It s also about what happens the day after the deal closes. Thinking about these issues early in the process is critical for your long-term financial health and peace of mind.
Here are a few post-sale topics to consider:
- Tax Implications. The structure of your sale has major consequences for your after-tax proceeds. Planning for this from the beginning can save you a significant amount of money.
- Your Future Role. Do you want to leave medicine entirely? Or would you prefer to stay on for a few years, focusing only on clinical work? Many deals can be structured with an employment agreement or an “earnout” that rewards you for continued performance.
- A Second Bite of the Apple. In many private equity deals, you can “roll over” a portion of your sale proceeds into equity in the new, larger company. This allows you to benefit from the growth you help create, leading to a second, often larger, payday when the new company is sold years later.
- Your Staff and Legacy. A key part of our process is finding a buyer whose culture aligns with yours. This ensures your staff is taken care of and that the practice you built continues to thrive.
Frequently Asked Questions
What makes Fort Lauderdale a good market for selling a neurology practice?
Fort Lauderdale is a mature and active healthcare market with 326 neurologists and an established Neurology Residency Program at Broward Health, which creates a strong pipeline of new talent. This robust ecosystem attracts sophisticated buyers, including private equity groups and large health systems, making it a desirable location to sell a neurology practice.
How do buyer types affect the sale of a neurology practice in Fort Lauderdale?
There are three main buyer types: Private Equity Groups seek growth and efficiency and may offer higher valuations with options to retain equity; Hospital Systems aim to expand their network providing stability and local patient referrals; Strategic Competitors might offer lower valuations but understand the business well. Choosing the right buyer influences sale terms and outcomes.
What factors influence the valuation of a neurology practice in Fort Lauderdale?
Valuation is based on Adjusted EBITDA, which reflects the true cash-generating power of the practice, and a multiple that varies by practice size, risk (dependency on one provider), and growth potential. Multi-provider practices with a clear growth strategy can expect multiples ranging from 5.5x to over 7.5x Adjusted EBITDA in today’s market.
What steps should be taken before selling a neurology practice to maximize value?
Preparation and positioning are crucial — clean up financials, organize key documents, and craft a compelling growth story. This process begins months before marketing the practice. Early planning, ideally 2-3 years before exit, ensures stronger negotiation leverage and prevents surprises during due diligence.
What should a seller consider about life after selling their neurology practice?
Sellers should plan for tax implications of the sale to maximize after-tax proceeds, decide if they want to continue clinical work or leave medicine, and consider ‘rollover’ equity options for potential future earnings. It’s also essential to find a buyer aligned with the practice’s culture to protect the staff and legacy post-sale.