Selling your Wisconsin urgent care practice is a significant decision that involves more than just finding a buyer. The market is experiencing strong growth, driven by national trends and private equity interest. Navigating this landscape requires careful planning. This guide offers strategic insights into the current market, valuation, and the sale process, helping you prepare for a successful transition.
Thinking of selling? The first step is to understand your options and what your practice might be worth. We can help you get a clear picture without any pressure or commitment.
Market Overview
The environment for selling an urgent care practice has never been more active. Nationally, the market is projected to reach over $34 billion in 2024 and grow steadily. We see these positive trends reflected right here in Wisconsin.
National Momentum
The demand for on-demand healthcare has caused the urgent care industry to nearly double in size over the last decade. This growth is attracting significant attention from a wide range of buyers, from large health systems to sophisticated investment groups. They see the value in well-run, strategically located urgent care centers.
The Wisconsin Context
Healthcare is a pillar of Wisconsin’s economy. It employs over half a million people across the state. This strong foundation creates a stable and attractive market for healthcare transactions. Buyers know Wisconsin is a great place to invest in a practice, which is good news for owners who are considering an exit.
Key Considerations for Wisconsin Owners
When you prepare to sell, buyers will look closely at two main areas: your finances and your operations. Getting these right is not just about a smooth process. It is about maximizing your practice’s value.
Beyond your profitability, buyers will assess your location, your team, and your patient demographics. But in Wisconsin, there is an added layer of legal compliance. State and federal rules, like the Corporate Practice of Medicine doctrine and regulations around fee-splitting, are strict. A misstep here can create significant problems during a sale. This is an area where preparing in advance with expert guidance can protect you from future headaches and ensure your practice is positioned correctly for a transaction.
Understanding Market Activity
The growth in urgent care has brought new types of buyers into the market, each with different goals. Understanding who they are and what they want is key to finding the right partner for your practice’s future. Private equity investment, in particular, has become a major force, and we see this trend playing out in Wisconsin’s active M&A landscape. A professional process does not just list your practice. It creates a competitive environment by confidentially approaching the right buyers.
Here is a simple breakdown of the most common buyer types:
| Buyer Type | Primary Motivation | What This Means for You |
|---|---|---|
| Private Equity Group | Growth and operational improvements for a future sale. | They often pay higher prices but focus heavily on true profitability (Adjusted EBITDA) and a strong management team. |
| Regional Health System | Expanding their service area and patient referral network. | The strategic fit of your location is very important. The process may be more focused on integration. |
| Local Competitor | Gaining market share and creating efficiencies. | This can sometimes lead to a faster process, but the focus will be on how your practice fits with their existing operations. |
The Sale Process at a Glance
Many owners think selling a practice is like selling a house. You list it and wait for offers. In reality, a successful sale is a managed, confidential process designed to protect your business and achieve the best outcome. The journey typically follows a clear path, starting long before your practice is ever presented to a buyer.
It all begins with preparation, where you work with an advisor to present your practice’s finances and story in the best possible light. This is followed by a detailed valuation, confidential marketing to a curated list of potential buyers, and structured negotiations. The final critical stage is due diligence, where the buyer verifies everything. This is where many deals without expert guidance fall apart. A well-managed process anticipates these hurdles, ensuring a smoother path to closing.
How Is an Urgent Care Practice Valued?
One of the first questions an owner asks is, “What is my practice worth?” The answer is more complex than a simple multiple of your revenue. Sophisticated buyers value your practice based on its true, repeatable cash flow, a metric known as Adjusted EBITDA. This figure represents your earnings after normalizing for any owner-related or one-time expenses. That number is then multiplied by a figure that reflects your practice’s risk and growth potential.
Three core drivers of your practice’s value include:
- Scale and Team: Larger practices with multiple providers are generally seen as less risky and command higher valuation multiples than a practice dependent on a single owner.
- Profitability: The higher your Adjusted EBITDA margin, the more attractive your practice is. We help owners find ways to optimize this before a sale.
- Growth Story: Buyers pay a premium for a practice that has a clear path to future growth, whether through adding services, opening new locations, or improving operations.
Planning for Life After the Sale
The day you sign the deal documents is not the end of the story. It is the beginning of a new chapter for you and your team. Thinking about what you want that chapter to look like is a critical part of the sale process itself because it shapes the terms of the deal. Will you retire immediately or continue working for a few years under an employment agreement?
Many deals today include terms like earnouts, where you can receive additional payments if the practice hits certain performance targets post-sale. Another common structure is an equity rollover, where you retain a minority stake in the new, larger company. This gives you a chance for a “second bite at the apple” when that new company is eventually sold. Defining your personal and financial goals early helps us structure a deal that secures your legacy and sets you up for what is next.
Frequently Asked Questions
What is driving the growth in the urgent care market in Wisconsin?
The market is driven by national trends such as the increasing demand for on-demand healthcare, along with significant interest from private equity groups and buyers like health systems seeking strategic expansion. Wisconsin’s strong healthcare economy also supports this active market.
What legal considerations should Wisconsin urgent care practice owners be aware of when selling?
Owners must comply with state and federal laws such as the Corporate Practice of Medicine doctrine and regulations against fee-splitting. These legal requirements are strict and critical to address to avoid complications during the sale process.
How do buyers typically value a Wisconsin urgent care practice?
Valuation focuses on Adjusted EBITDA, which represents the practice’s normalized cash flow after accounting for owner-related and one-time expenses. Factors influencing value include practice scale and team size, profitability, and growth potential, rather than just revenue multiples.
Who are the common types of buyers for urgent care practices in Wisconsin, and what are their motivations?
The main buyer types include private equity groups (focused on growth and operational improvements), regional health systems (interested in expanding service areas and referrals), and local competitors (aiming to increase market share and efficiencies). Each buyer type has different priorities affecting the sale process.
What steps are involved in selling an urgent care practice in Wisconsin?
The sale involves several stages: preparation with advisory help to present finances and story, valuation, confidential marketing to selected buyers, structured negotiations, and thorough due diligence. A well-managed, confidential process ensures the best outcome and smoother closing.