Considering the sale of your oncology practice is a major decision. It represents years of hard work, patient relationships, and personal investment. For practice owners in Oklahoma City, the current market presents unique opportunities but is also difficult to navigate. This guide provides insight into the local landscape, key valuation drivers, and the process, helping you understand how to prepare for a successful transition.
Thinking about the future of your practice? A good first step is understanding its current market value.
The Oklahoma City Oncology Market
The healthcare M&A landscape is active nationally, and Oklahoma City is no exception. We see significant interest from buyers looking to enter or expand in the region. However, you have likely noticed that specific, reliable information on local oncology practice sales is hard to come by. Most transactions are private, creating a market where having inside knowledge is a distinct advantage.
A Market of Opportunity
Oklahoma City’s growing population and established healthcare infrastructure make it an attractive location for investors. Buyers, ranging from large hospital systems to sophisticated private equity groups, are actively seeking well-run oncology practices to partner with. They see the potential in our community.
An Opaque Environment
While the interest is high, the lack of public data on valuations and deal structures can be frustrating. You cannot simply look up what a practice like yours sold for down the street. This information gap makes it challenging for a solo owner to know if they are getting a fair offer or negotiating the best possible terms. This is where a dedicated advisor becomes a key partner.
Key Considerations for Selling Your OKC Oncology Practice
When a buyer evaluates an oncology practice, they look beyond the surface-level numbers. Preparing your practice means understanding what they value most. If you are thinking about a sale, even if it is 2-3 years away, now is the time to start focusing on these areas.
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Referral Patterns and Network Strength. Where do your patients come from? Strong, diverse, and well-documented referral relationships with primary care physicians and other specialists are a significant asset. A buyer sees this as a sign of a stable, sustainable business.
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Payer Mix and Reimbursement. A healthy balance of commercial insurance, Medicare, and Medicaid is important. Buyers will analyze your payer contracts and reimbursement rates to project future revenue. Practices that have proactively managed their contracts are often valued higher.
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Ancillary Services and Technology. Do you offer in-house infusion, radiation therapy, imaging, or lab services? These integrated services are major value drivers. The age and condition of key equipment, like linear accelerators, will also be a core part of a buyer’s evaluation.
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Physician Dependence. A practice that can operate efficiently without being entirely dependent on the owner is more valuable. If you have associate physicians, nurse practitioners, or physician assistants who have strong patient relationships, it reduces the perceived risk for a buyer.
Market Activity: The Trend Toward Partnership
Across the country, the dominant trend in oncology is consolidation. Independent practices are increasingly partnering with larger organizations. This allows them to gain administrative support, access capital for new technology, and improve their negotiating power with insurance companies.
In Oklahoma City, this activity is happening quietly. We see private equity-backed groups and regional health systems making strategic acquisitions. They are not just buying a business. They are looking for strong clinical leaders to partner with to build a larger platform. For you, this means the “buyers” are often looking for “partners.” They want you to continue practicing and help lead the organization. The opportunity is not just to sell, but to potentially take on a new, influential role with fewer administrative headaches.
The Sale Process: A Structured Approach
Selling a practice is not like listing a house. A professionally managed process is designed to protect your confidentiality, create competitive tension among buyers, and maximize your final value. One-off offers rarely represent the best deal you can get. A structured process avoids common pitfalls and keeps you in control.
| Stage | What It Means for You |
|---|---|
| 1. Preparation & Valuation | We work with you to analyze your financials, normalize your earnings (EBITDA), and build a clear story about your practice’s strengths and growth potential. |
| 2. Confidential Marketing | We identify and discreetly approach a curated list of qualified buyers from our proprietary database. Your identity is protected until a non-disclosure agreement is signed. |
| 3. Negotiation & Diligence | We manage offers, negotiate key terms, and help you prepare for the buyer’s deep dive into your operations and financials. This stage is where many deals fail without expert guidance. |
| 4. Closing & Transition | We coordinate with legal and accounting teams to finalize documents and ensure a smooth transition for you, your staff, and your patients. |
Understanding Your Practice’s True Value
Many owners I speak with are not sure what their practice is worth. Some even feel it may not be worth enough to sell. The truth is, most practices are worth more than their owners think once they are properly valued. The process is not based on a simple rule of thumb. It is based on a specific financial metric.
The most important figure is your Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. More simply, it is a measure of your practice’s true cash flow. We calculate it by taking your net income and adding back things like your salary (if it is above market rate), personal expenses run through the business, and other one-time costs. This number is often much higher than your reported profit.
Your practice’s value is then determined by multiplying your Adjusted EBITDA by a “multiple.” This multiple can range from 4x to over 10x, depending on factors like your practice’s size, growth rate, payer mix, and the strength of your clinical team. Buyers pay premium multiples for larger, well-run practices with clear growth opportunities.
Life After the Sale: Planning Your Next Chapter
A successful transaction is about more than just the price. It is about setting you up for the future you want, protecting your team, and securing your legacy. These are not afterthoughts. They should be central to the negotiation from day one.
Your Future Role
Many buyers will want you to continue practicing for a period of time. Do you want to work full-time or part-time? Do you want a leadership role? We help structure a deal that matches your personal and professional goals. You do not have to give up control entirely. Many modern partnerships are designed to keep physicians at the helm of clinical decisions.
Protecting Your Team and Legacy
Your staff and the culture you have built are valuable. A good buyer recognizes this. We can build protections for your key employees into the purchase agreement, ensuring a stable transition and preserving the patient-care environment you worked so hard to create.
The “Second Bite of the Apple”
Many deals now include an “equity rollover.” This is where you exchange a portion of your sale proceeds for ownership in the new, larger company. If that company is sold again in 3 to 5 years, you get a second, often much larger, payout. This strategy aligns your financial interests with your new partner and allows you to share in the future success you help create.
Frequently Asked Questions
What makes Oklahoma City an attractive market for selling an oncology practice?
Oklahoma City’s growing population and established healthcare infrastructure attract investors such as large hospital systems and private equity groups. These buyers are actively seeking well-run oncology practices to partner with, seeing potential in the community.
How is the value of my oncology practice determined in Oklahoma City?
Practice value is mainly based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). It reflects true cash flow by adjusting net income for salaries above market rate, personal expenses, and one-time costs. The value is calculated by multiplying Adjusted EBITDA by a multiple that can range from 4x to over 10x, depending on practice size, growth, payer mix, and clinical team strength.
What are key factors buyers consider when evaluating my oncology practice?
Buyers focus on referral patterns and network strength, payer mix and reimbursement rates, the presence of ancillary services and technology like in-house infusion or radiation therapy, and the degree of physician dependence. Practices with diverse referrals, balanced payer contracts, integrated services, and associate clinicians tend to be more valuable.
What does the sale process for an oncology practice in Oklahoma City entail?
The sale process includes: 1) Preparation and valuation to analyze financials and build a strengths narrative, 2) Confidential marketing to discreetly approach qualified buyers, 3) Negotiation and due diligence where offers are managed and key terms negotiated, and 4) Closing and transition with legal and accounting coordination to ensure smooth handover.
Can I continue working or have a leadership role after selling my oncology practice?
Yes, many buyers seek clinical leaders to partner with and want sellers to continue practicing, either full-time or part-time. Deals can be structured to fit your personal and professional goals, allowing you to maintain influence over clinical decisions and even participate in an equity rollover for future financial benefits.
