The market for selling an urgent care practice in Georgia is more active than ever. With strong buyer demand and favorable economic trends, owners have a significant opportunity to achieve an optimal valuation and secure their financial future. However, navigating the sale is a complex process that requires careful preparation and strategic guidance. This guide provides insight into the current market, what buyers are looking for, and how you can prepare for a successful transition.
Market Overview
The climate for selling an urgent care center in Georgia is strong. The industry is expanding nationally, and Georgia is a key part of that growth, with over 530 centers operating last year. Patients are increasingly choosing urgent care for its convenience and affordability, with an average visit costing a fraction of an emergency room alternative. This creates a stable and attractive market for buyers.
A Resilient and Growing Market
Healthcare is recession-resistant. Patient needs remain constant regardless of economic shifts, which gives your practice an inherent stability that buyers value. This is especially true as younger generations, like Gen Z and Millennials, often use urgent care for their primary health needs, fueling sustained demand for years to come.
Georgia s Unique Advantage
Atlanta, in particular, is a hotbed of activity. We are seeing major groups like GoHealth Urgent Care expand their footprint here, signaling strong buyer confidence in the region. For a potential seller, this means more than just a stable market. It means an active and receptive audience is looking for acquisition opportunities right now.
Key Considerations
When preparing to sell, sophisticated buyers will look far beyond your top-line revenue. They scrutinize the underlying health and efficiency of your operations. It is not just about how much money the practice makes. It is about how well it runs and its potential for future growth. Taking the time to optimize key areas is the single best way to maximize your valuation.
Three areas buyers will examine closely are:
1. Operational Strength. A well-run practice with efficient patient workflows, stable staffing, and documented procedures is less risky for a new owner. This proves your business is not just profitable but sustainable.
2. Technology and Innovation. The market is changing. In 2022, nearly all urgent care centers offered telehealth services. Buyers look for practices that have invested in technology to meet modern patient demands and improve efficiency.
3. Financial Health. A favorable payer mix is a significant driver of financial stability. Buyers will analyze this to understand the quality and reliability of your earnings.
Market Activity
The pool of potential buyers for your Georgia urgent care practice is both diverse and growing. While physician-owned practices remain common, there is a significant increase in acquisitions by hospital systems and private equity-backed groups. This variety is good news for you. It can create a competitive bidding environment that leads to better offers and more favorable terms. We have seen this firsthand with recent transactions in Georgia, including acquisitions by groups like CRH Healthcare and new clinic openings by NGHS and Southside Medical Center.
Different buyers are motivated by different goals, which influences what they look for in a practice.
| Buyer Type | What They Prioritize |
|---|---|
| Private Equity Groups | Practices with strong, scalable operations and high EBITDA. |
| Hospital Systems | Strategic locations that expand their network and referral base. |
| Large Urgent Care Chains | Turnkey practices that allow for quick market consolidation. |
Understanding these buyer motivations is key to positioning your practice to attract the right partner for your specific goals.
The Sale Process
Selling your practice is a journey with several distinct stages. Many owners believe the time to talk to an advisor is when they are ready to list. The truth is that the most successful sales begin long before that.
We advise owners to start preparing 12 to 24 months before they plan to sell. This gives you time to clean up your financials, optimize operations, and address any potential red flags. A well-prepared practice not only fetches a higher price but also moves through the process more smoothly.
The path to a sale generally follows these steps:
1. Strategic Preparation. This involves organizing your financial documents, optimizing your operations, and identifying any areas for improvement.
2. Confidential Marketing. Your advisor confidentially presents your practice to a vetted pool of qualified buyers without alerting your staff or competitors.
3. Offer Negotiation. You will review and negotiate Letters of Intent (LOIs) from interested parties to secure the best terms.
4. Rigorous Due Diligence. The chosen buyer will conduct an in-depth review of your practice s financials, operations, and legal standing. Proper preparation is critical to prevent surprises here.
5. Closing and Transition. The final legal documents are signed, and you work with the new owner to ensure a smooth handover for your team and patients.
Valuation
Many practice owners mistakenly believe their practice’s value is a simple multiple of its annual revenue. In reality, the most important metric for buyers is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA gives a true picture of your practice’s ongoing profitability by adding back owner-specific or one-time expenses, like a vehicle lease or an above-market salary.
For example, a practice with $500,000 in net income might have an Adjusted EBITDA of $700,000 after normalizing the owner s compensation and other personal expenses. This single adjustment can dramatically increase the practice s valuation. The final value is then determined by applying a market multiple to this figure, which is influenced by factors like your practice’s size, growth potential, and payer mix. Getting this calculation right is the foundation of a successful sale.
Post-Sale Considerations
The work is not over once the deal is signed. Planning for what comes next is crucial for protecting your legacy, your team, and your financial outcome. Thinking about these elements early in the process allows you to negotiate a deal structure that aligns with your personal and professional goals.
Securing Your Legacy and Team
A smooth transition is important. You want to ensure your patients continue to receive excellent care and that your staff feels secure under the new ownership. A good partner will value the culture you have built and work with you to maintain it.
Optimizing Your Financial Outcome
The structure of your sale has major implications for your after-tax proceeds. Whether it is an asset or stock sale can significantly change your tax burden. Planning this with an expert ensures you keep more of your hard-earned money.
Your Future Role
Selling your practice does not always mean walking away immediately. Many deals include an ongoing role for the seller, whether through an earnout agreement tied to future performance or by retaining a portion of equity in the new, larger company. This can provide a “second bite at the apple” and a financially rewarding next chapter.
Frequently Asked Questions
What is the current market environment for selling an urgent care practice in Georgia?
The market for selling urgent care practices in Georgia is very active, with strong buyer demand and positive economic trends. The healthcare sector is recession-resistant, and the increasing preference for urgent care over emergency rooms creates stable demand for these practices.
What key factors do buyers consider when evaluating an urgent care practice in Georgia?
Buyers closely examine operational strength, including efficient workflows and stable staffing; investment in technology such as telehealth services; and financial health, particularly the payer mix, to assess sustainability and growth potential.
Who are the typical buyers for urgent care practices in Georgia, and what do they prioritize?
Buyers include private equity groups, hospital systems, and large urgent care chains. Private equity focuses on scalable operations and high EBITDA, hospitals prioritize strategic locations to expand their networks, and urgent care chains seek turnkey practices for quick consolidation.
What are the essential steps in the process of selling an urgent care practice in Georgia?
The sale process includes strategic preparation, confidential marketing to qualified buyers, negotiating offers, conducting rigorous due diligence, and finally, closing the sale with a smooth transition to new ownership.
How is the valuation of an urgent care practice determined during a sale?
The most important valuation metric is Adjusted EBITDA, which reflects the practice’s true profitability after adjusting for owner-specific or one-time expenses. The final valuation is calculated by applying a market multiple to this figure, considering size, growth potential, and payer mix.