The competitive and reimbursement environment for healthcare companies is becoming more complex.
If you own a small to medium size healthcare practice or business you may feel like you are in a street fight most of the time.
You may be seduced into believing that the value of your practice will increase with the simple passage of time. This may not be true. And it could be particularly dangerous if more than 50% of your net worth is tied to the value of your business, which is the case for most healthcare business owners.
Here is some good news: You can take simple and inexpensive steps today to increase the value of your business.
The first step is to have a valuation completed on your business. Even if you are not considering selling your business in the near term, the valuation will give you a benchmark. It tells you where you are today and the steps you need to take to get you where you want to go.
You will discover the key drivers and detractors of your specific businesses value. You may also benefit from having a valuation done if you are considering any of the following scenarios:
- Exit: Being acquired, merging, entering a strategic partnership, or have received an unsolicited offer to sell your business.
- Financing: Looking to obtain a bank debt or raise capital from an investor.
- Legal: Going through a divorce, or experiencing a shareholder or partnership dispute.
- Taxable Event: Estate planning, gift planning, or death of a shareholder.
Understanding these value drivers and detractors gives you the data you need to make the tactical changes in your business to enhance the short and long term value and ultimately create wealth.
Put simply: Making a few minor adjustments today pays you big dividends in the future.