Thinking of Selling Your Health Care Business or Practice in Quebec?: What You Need to Know
Health care is an industry that is constantly growing and evolving as new technologies and discoveries change treatments and care. This reality is truer than ever as the world has seen during the recent COVID-19 health care crisis.
If you are looking to sell your healthcare parctice, the conditions may be better than ever. Why? Well, health care is a fast-growing industry. The demand for health care professionals is expected to increase by 16% over the next 10 years. Consolidation in the sector is still very active even with the current economic environment and is not expected to slow, though valuation may be softening due to the rise in interest rates.
Even during the previous recession, the healthcare sector recovered faster than many others. Buyers look at that positive history and know that if any industry has the potential to do well, it’s health care.
It’s a great time to consider selling your health care business in Quebec.
Whether you are interested in retiring or simply want to explore new business opportunities, now is an ideal time to sell your health care business. At Transworld Business Advisors in Quebec we are seeing a big demand from investors inquiring about healthcare opportunities to grow their portfolio. In fact it is one of the most demanded industry when serious buyers get in touch with our office in Montreal. Transworld business brokers are experienced in all business sales, including health care. Our expertise includes the sale of medical practices, in-home elder care, medical transcription service, dental clinics, childcare service, alternative/holistic health care services, medical supply stores, massage clinics/massage franchises, physical therapy clinics and more.
The trends fueling the health care market.
Beyond the impact of the pandemic on healthcare businesses, there are even more reasons why now is an ideal time is to sell your business.
First, aging baby boomers continue to spike demand for healthcare. The number of older adults is expected to outnumber children for the first time in North American history. This population reversal is anticipated to happen by 2030.
Additionally, the need for innovations for the ever-growing population of seniors continues. AARP reports that fewer seniors are choosing to live in nursing homes, meaning the need for high-quality in-home care will continue to rise. These changes mean that health care providers will be tasked with continuing to find new ways to meet the needs of today’s older adults.
Second, the demand for mental health services has been on the rise due to the pandemic. More Canadians need and are seeking treatment for depression and anxiety. The American Psychological Association (APA) conducted a survey in 2020 that found increases in treating anxiety disorders (84%, up from 74%) and depressive disorders (72%, up from 60%).
People recognize the toll the pandemic has taken on their well-being. As a result, many are placing more emphasis on self-care and are prioritizing work-life balance. This is resulting in an increased interest surrounding massage clinics and massage franchises, as well as a range of other holistic approaches to health.
The pandemic has also normalized telehealth services, making it more mainstream and accessible.
Mergers and Acquisitions activity in Montreal
Finally, the healthcare industry is experiencing many mergers and acquisitions in the province of Quebec. The benefit of this is it improves the patient experience and increases innovation. It also makes it a great time to sell your health care practice. A great example is hospitals acquiring electronic health records companies, which allows the hospitals to streamline electronic medical records.
Steps to selling your health care business or practice
Before you can start down the road to selling your healthcare business, there are some things you need to know:
- What is the value of your business? Knowing how much your health care business is worth allows you to decide if a buyer’s offer is reasonable, too low or higher than you expected. Transworld has a business valuation calculator you can use to help determine your earning potential.
- Take time to organize your accounting. If you are serious about selling your healthcare business, make time to clean up your balance sheets. It is essential that all your income is accounted for before you put your business on the market.
- Find the right buyer. A good place to start is by working with Transworld Business Advisors Quebec. We can help. Our team of business brokers has expertise in the health care industry and a proven process to match sellers with qualified buyers.
Contact Transworld Business Advisors Quebec to schedule a FREE consultation today to get started.