The process of selling your healthcare business or attracting investors is often referred to as “selling your baby,” reflecting the very personal nature of this important business transaction. While each transaction is unique, we have identified 20 attributes that determine the probability of successfully completing a transaction.
We’ll review these attributes below and touch on what you can do to improve your probability of closing. Note: Read to the end to learn about how you can access a tool that will help you conduct a self-examination to determine the probability of closing a transaction involving your business.
1. Owner commitment
The level of owner commitment to sell their business is a key attribute in determining the probability of closing. The most common reasons owners decide to sell their business are retirement, burnout, divorce, illness, relation/lifestyle changes, poor company performance, industry or competition changes, reimbursement changes, partner disputes, and various financial reasons. Of these listed reasons, retirement, burnout, and financial reasons — most notably a desire to recapitalize the company — are the top three reasons an owner chooses to sell their “baby.”
Owners seeking retirement or suffering burnout or illness typically have a high level of commitment to sell, whereas owners wishing to recapitalize, going through a divorce, or having partner disputes have a medium to low level of commitment to sell.
Commitment is keenly important as the sale or transaction process is long and difficult. All parties to a transaction must be willing to work diligently to reach a successful closing.Continue reading on VERTESSPress.com