The Columbus, Ohio primary care market is active, presenting a unique window of opportunity for practice owners. Whether you are years away from an exit or actively planning a transition, understanding the local landscape is your first step. This guide provides key insights into the market, valuation, and the process of selling your practice, helping you take control of and successfully navigate your exit strategy.
The Columbus Market Overview
The market for primary care practices in Columbus is best described as dynamic. We see a healthy mix of well-established practices considering a sale and newer clinics, opened within the last five years, also entering the market. This signals a robust environment for both buyers and sellers.
A Market in Motion
Significant capital is flowing into the region. A recent $22.8 million investment into a new primary care facility in the Columbus metro area shows that regional and national buyers see long-term value here. For you, this means sophisticated buyers are actively looking for acquisition opportunities, but it also means the competitive landscape is changing.
The Buyer Landscape
The buyers in Central Ohio range from large, established physician groups like Central Ohio Primary Care (COPC) to private equity-backed platforms looking to expand their footprint. Each buyer type has different goals and offers different deal structures. Understanding their strategic priorities is a key part of positioning your practice for the best possible outcome.
Key Considerations for Selling Your Practice
Beyond the market data, a successful sale depends on your personal and financial readiness. We find that owners who achieve their goals focus on a few key areas well in advance of a sale.
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Plan for a Marathon, Not a Sprint. The single biggest mistake we see is waiting too long to prepare. The entire sale process, from initial valuation to closing, often takes 12 months or more. Starting the conversation 2-3 years before your target exit date is not too early. It gives you time to prepare on your terms, not a buyer’s.
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Understand Your Value. While general “rules of thumb” exist, like the typical 0.5x to 0.7x revenue multiple for primary care, your practice’s true value is much more nuanced. It is tied to profitability, operational efficiency, and your strategic position in the Columbus market.
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Define Your Legacy. What do you want to happen to your patients and your staff after you leave? The right buyer and the right deal structure can protect the culture you have built. This is often as important as the final sale price.
What Market Activity Looks Like Today
The theoretical opportunity in Columbus is backed by real-world activity. A snapshot of the current landscape reveals a market with multiple entry points for buyers, which is good news for prospective sellers. This diversity shows that buyers are not just looking for one specific type of practice.
| Market Indicator | Current Columbus, OH Details | Why It Matters to You |
|---|---|---|
| Active Listings | Practices are listed from ~$200k to over $700k. | There is an active marketplace for practices of various sizes. |
| Investor Interest | A $22.8M investment was made in a local PC facility. | Large, well-capitalized buyers are confident in the Columbus market. |
| Practice Age | Newer practices (est. 2019) are also on the market. | Your practice does not need to be decades old to be valuable. |
This activity confirms that now is an interesting time to evaluate your options. Buyers are present, and capital is available for the right opportunities.
Understanding the Sale Process
Selling your practice is not like selling a house. It is a strategic process that must be managed carefully to protect confidentiality and maximize value. While every sale is unique, they generally follow four distinct phases.
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Preparation & Valuation. This is the most important phase. It involves a deep financial review, a formal valuation, and the preparation of marketing materials that tell your practice’s story. This happens long before your practice is ever shown to a buyer.
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Confidential Marketing. The goal is not to “list” your practice for sale. It is to run a confidential, targeted process. We identify and discreetly approach a curated list of qualified strategic buyers and investors who are the best fit for your specific goals.
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Negotiation & Due Diligence. After initial offers are received, we negotiate terms and select a final buyer. The buyer then begins a formal due diligence process to verify all financial and operational information. This is where many deals encounter problems if preparation was not thorough.
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Closing & Transition. The final phase involves legal documentation and the official transfer of ownership. A well-managed process includes a clear plan for transitioning relationships with staff and patients.
How Your Practice is Valued
One of the first questions any owner asks is, “What is my practice worth?” While you might hear rules of thumb based on revenue, sophisticated buyers look much deeper. They value your practice based on its profitability and future potential.
Beyond the Revenue Multiple
The common 0.5x to 0.7x annual revenue multiple for primary care is a useful starting point, but it doesn’t tell the whole story. A $2 million practice that is highly profitable is worth far more than a $2 million practice that is barely breaking even. This is why buyers focus on cash flow.
The Power of Adjusted EBITDA
The most important metric in any practice sale is Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. More simply, it represents the true cash flow of your business. We calculate this by taking your net income and adding back owner-specific expenses like an above-market salary, personal car leases, or other benefits. This shows a buyer the profit they could expect to generate, and it is this number that determines your final valuation.
Post-Sale Considerations
The deal is not done when the papers are signed. A successful transition plan addresses what happens in the months and years after the closing. Planning for this phase is critical to protecting your financial future and your legacy.
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The Structure of Your Payout. Your proceeds are often more than just cash at closing. The deal may include an earnout, where you receive additional payments for hitting future performance targets, or rollover equity, where you retain a minority stake in the new, larger company. This can provide a “second bite at the apple” when the larger entity sells again.
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The Future of Your Team. What happens to your long-time office manager or lead nurse? The terms of the sale agreement can include protections for your staff, ensuring a smooth transition and preserving the positive culture you worked so hard to build.
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Your Role After the Sale. Many owners fear a loss of control. But control isn’t an all-or-nothing concept. A good partner will want to preserve your clinical autonomy. Your transition role, whether it is for six months or three years, is defined and negotiated upfront so there are no surprises.
Frequently Asked Questions
What is the current market environment for selling a primary care practice in Columbus, OH?
The Columbus primary care market is dynamic and active with a mix of well-established and newer practices entering the market. Significant investment is flowing into the area, signaling strong buyer interest and a competitive environment.
Who are the typical buyers for primary care practices in Columbus?
Buyers include large local physician groups like Central Ohio Primary Care (COPC) and private equity-backed platforms. Each buyer has different goals and deal structures, so understanding their priorities can help you position your practice effectively.
How should I prepare for selling my primary care practice in Columbus?
Start preparations 2-3 years before your target exit date to allow time for valuation, strategizing, and finding the right buyer. Focus on understanding your practice’s true value, operational efficiency, and your goals for your practice’s legacy and staff.
How is my practice’s value determined in Columbus?
While primary care practices typically sell for 0.5x to 0.7x revenue, true value is based on profitability and future potential, primarily measured by Adjusted EBITDA, which accounts for true cash flow by adjusting net income for owner-specific expenses.
What happens after the sale of my primary care practice in Columbus?
Post-sale considerations include the structure of your payout (which may include earnouts or equity in the larger company), the future of your staff, and your ongoing role with the practice. These elements are negotiated to protect your financial future and legacy.