The market for urgent care in Jacksonville is defined by consolidation and growth. Private equity groups and large health systems are actively acquiring established practices to expand their footprint. For an independent owner, this presents a significant opportunity. This guide provides a clear overview of the market, key considerations for selling, and how to position your practice to achieve its maximum value. Proper planning is the first step toward a successful transition.
Market Overview
The national urgent care industry is mature and stable. It continues to grow as it becomes a standard part of the healthcare landscape. Florida is a major player, home to roughly 7% of all urgent care centers in the United States. In Jacksonville, this trend is amplified by strong suburban growth, which has driven a nearly 20% increase in urgent care centers in these areas from 2019 to 2023.
A State of Growth
This steady growth is a positive signal for practice owners. It shows sustained patient demand and confirms the urgent care model’s long-term viability. A growing market attracts more buyers. It also means that well-run practices in strategic locations are seen as valuable assets.
Consolidation is Key
The most important trend is consolidation. Instead of building new clinics from scratch, large operators prefer to acquire existing practices. They want your established patient base, your operational team, and your local reputation. This a key reason why the market is so active for sellers.
Key Considerations
Selling your practice is more than a financial transaction. It’s a personal and professional milestone. Owners often decide to sell because of the increasing pressures of running an independent practice. These can include rising operational costs, complex billing and coding regulations, and the constant need to manage patient flow.
Thinking about your personal goals is a big part of this. What do you want for your legacy? How do you ensure your staff is taken care of during a transition? Finding a buyer who aligns with your values is just as important as the final sale price. The right partner will respect the practice you built.
Your legacy and staff deserve protection during the transition to new ownership.
Market Activity
The M&A market in Jacksonville is active. Both private equity firms and regional health systems are looking to acquire urgent care practices. Each buyer type has different goals, which influences what they look for and how they structure a deal. This creates a competitive environment for well-positioned practices.
| Buyer Type | Primary Goal | What This Means for You |
|---|---|---|
| Private Equity Group | Growth, profitability, and operational efficiency improvements. | They focus on strong financials, especially Adjusted EBITDA. They may offer equity rollover opportunities. |
| Strategic Health System | Expanding their patient network and service lines. | They focus on your practice’s physical location, referral patterns, and community reputation. |
Because buyers are actively competing for practices, you have leverage. Running a structured process that introduces your practice to multiple qualified buyers is the best way to generate strong offers and give you options. A single, unsolicited offer is rarely the best deal you can get.
The Sale Process
Many owners think they should only start planning a sale when they are ready to exit. The most successful sales actually begin 12 to 24 months before a transaction. This gives you time to prepare your practice and sell from a position of strength, not necessity.
The process generally starts with professional preparation. This involves organizing your financials and addressing any operational issues. Next, your advisor will confidentially market your practice to a vetted list of potential buyers. The goal is to find the right fit. After initial offers are received, the chosen buyer will conduct due diligence. This is where they verify all the information about your practice. This is also where many deals encounter problems if the practice is not properly prepared. The final steps are negotiating the definitive agreement and closing the transaction.
Preparing properly for buyer due diligence can prevent unexpected issues.
Valuation
Understanding what your practice is worth is the foundation of a successful sale. A valuation is not based on revenue alone. Sophisticated buyers value your practice based on its profitability and future cash flow.
More Than Just Revenue
The most important metric is Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. We start with your net income and then “adjust” it by adding back one-time or owner-specific expenses. For example, if the practice pays for your personal car lease, that expense is added back to the profit because the new owner will not have that cost. This gives buyers a true picture of the practice’s core profitability. We find that most practices are worth more than owners think once their EBITDA is properly calculated.
The Power of Multiples
Your Adjusted EBITDA is then multiplied by a number called a “multiple” to determine the practice’s enterprise value. This multiple is not random. It is based on market data from recent transactions and is influenced by factors like your practice’s size, number of providers, and growth history. A multi-provider practice with strong growth will receive a higher multiple than a smaller, single-provider clinic.
Curious about what your practice might be worth in today’s market?
Post-Sale Considerations
The deal is not done when the papers are signed. How your sale is structured has a major impact on your future. Two common components in modern deals are earnouts and equity rollovers. An earnout is a portion of the sale price that is paid out over the next few years if the practice hits certain performance targets.
An equity rollover is when you reinvest a portion of your sale proceeds back into the new, larger company. This allows you to retain some ownership and benefit from the company’s future growth. This is often called “the second bite of the apple,” and it can significantly increase your total financial outcome when the larger company sells again in a few years. Planning for these elements, along with the tax implications of your sale, ensures your long term financial goals are met.
Frequently Asked Questions
What is the current market trend for urgent care practices in Jacksonville, FL?
The urgent care market in Jacksonville is characterized by consolidation and growth. There is an active acquisition trend by private equity groups and large health systems expanding their footprint, especially in suburban areas, driven by nearly 20% growth in urgent care centers from 2019 to 2023.
What factors do buyers consider most important when purchasing an urgent care practice in Jacksonville?
Buyers focus on different factors depending on their type. Private equity groups prioritize strong financials, especially Adjusted EBITDA, and operational efficiency. Strategic health systems value the practice’s physical location, referral patterns, and community reputation. Both types seek practices with established patient bases and operational teams.
When should a Jacksonville urgent care practice owner start planning the sale?
The most successful sales begin 12 to 24 months before the intended transaction date. This early preparation allows time to organize financials, address operational issues, confidentially market the practice to multiple qualified buyers, and avoid issues during due diligence.
How is the valuation of an urgent care practice determined in Jacksonville?
Valuation is primarily based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which adjusts net income by adding back one-time or owner-specific expenses. This figure is then multiplied by a market-based multiple influenced by practice size, number of providers, and growth history, to determine the enterprise value.
What post-sale options should sellers consider after selling their urgent care practice in Jacksonville?
Sellers should consider earnouts, where part of the sale price is paid over time based on performance targets, and equity rollovers, where they reinvest part of their proceeds back into the acquiring company to retain ownership and benefit from future growth. Proper planning for tax implications and deal structure is crucial for satisfying long-term financial goals.