Guide to Selling a Ortho & MSK Practice in Albuquerque, NM

If you own an Ortho & MSK practice in Albuquerque, you know the market is changing. Selling your practice is a major milestone, whether driven by retirement, a strategic shift, or a desire to join a larger group. This guide provides a clear overview of the current Albuquerque market, what drives your practice’s value, and the key steps in the sale process to help you navigate your transition with confidence.

The Albuquerque Ortho & MSK Market Landscape

The market for orthopedic and musculoskeletal (MSK) services is strong, both nationally and here in New Mexico. Nationally, the industry is projected to hit $58.8 billion by 2026. This growth puts practice owners like you in a favorable position.

In Albuquerque, specific factors create a unique environment. With roughly 8.86 orthopaedists per 100,000 people, the demand for specialized care is clear, especially since nearly 40% of the state’s orthopaedists operate in private practice settings. Buyer interest is fueled by a few key trends:

1. An Aging Population: Increasing demand for joint replacement and musculoskeletal care.
2. Advancements in Technology: Buyers seek practices that utilize modern tools like minimally invasive surgical techniques and telemedicine.
3. Active Lifestyles: New Mexico’s culture of outdoor activity contributes to a steady stream of sports-related injuries.

First Steps: What to Consider Before Selling

Thinking about a sale goes beyond just finding a buyer. The preparation you do now directly impacts your final valuation and the smoothness of the transaction. Before you even think about listing, you should get your house in order. This means clarifying what you are selling the entire practice, specific assets, or a partnership stake. It also means identifying any potential hurdles, like the terms of your real estate lease or outdated operational processes. Most owners find it is best to assemble a team early on. This team typically includes your accountant, a lawyer familiar with healthcare transactions, and an M&A advisor to guide the overall strategy. Starting this process 2-3 years before your target sale date is not too early. It gives you time to prepare on your terms.

Who is Buying Ortho Practices in Today’s Market?

The M&A market is active, with nearly 400 physician practice transactions happening in a single recent year. For Ortho & MSK practices in Albuquerque, this activity is driven by a few key types of buyers, each with different goals. Understanding them helps you position your practice effectively.

Private Equity (PE) Firms and Platforms

PE-backed groups are looking to build regional and national platforms. They seek profitable, well-run practices to serve as a foundation for growth. They often bring significant business expertise and capital but may have specific operational models you will need to consider.

Hospitals and Health Systems

Local and regional health systems often acquire specialty practices to expand their service lines and secure their referral base. A sale to a hospital can offer stability and integration into a larger network.

Large Orthopedic Groups

Strategic mergers are common, where practices join forces to create larger, physician-owned entities. This model, used by groups like United Musculoskeletal Partners, aims to increase negotiating power with payers while preserving physician leadership.

Understanding the Typical Sale Process

Once you decide to move forward, the sale process itself follows a structured path. It begins with creating a confidential overview of your practice, a short document that highlights your unique strengths, financials, and growth potential for qualified buyers. The next phase involves discreetly marketing the practice to a pre-vetted list of potential buyers. After initial interest is established and non-disclosure agreements are signed, the formal due diligence period begins. This is the most intensive part of the process, where the buyer verifies all financial, legal, and operational aspects of your practice. Proper preparation is critical here, as this is where deals often face delays or fall apart. A well-managed process ends with final negotiations and a smooth transition plan for your staff and patients.

How is Your Ortho & MSK Practice Valued?

One of the first questions every owner asks is, What is my practice worth? The answer is more than a simple revenue multiple. Sophisticated buyers, especially PE groups, focus on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true, sustainable cash flow after normalizing for any personal or one-time expenses. That Adjusted EBITDA figure is then multiplied by a number that reflects your practice’s risk and growth profile.

Many factors influence this multiple, including your provider mix, payer contracts, and growth trajectory. A solo practice will have a different multiple than a multi-provider group with ancillary services. Understanding your true EBITDA is the first step toward understanding your practice’s market value.

Note: These are illustrative ranges. Your specific multiple depends on many factors.

Life After the Sale: Planning for a Smooth Transition

The work is not over once the sale documents are signed. A successful transition is defined by what happens next for you, your staff, and your patients. Planning for this phase is a critical part of the deal structure itself. Will you be retiring completely or staying on for a period? How will your loyal staff be integrated into the new organization? Protecting your team is key to preserving the practice9s value for the buyer and securing your legacy. You also need a clear plan for managing patient communications and the legal custodianship of medical records to ensure continuity of care. Thinking through these elements beforehand ensures your transition out of ownership is as successful and rewarding as the years you spent building the practice.