Exit Planning Advice By Market
Selling an Ambulance Service
A lot can go wrong during the sale of an ambulance service these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
With planning and patience, most ambulance services can be sold for a fair price in the current business-for-sale marketplace.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell an ambulance service. We'll tell you what you need to know to achieve a successful sale outcome
Is Now the Right Time to Sell?
For entrepreneurs who are up to the challenge, this is the perfect time to get into the ambulance service game. Despite the initial obstacles, an aging U.S. population and an increasing demand for urgent medical services virtually guarantee a market for emergency transportation into the foreseeable future.
That puts existing owners of ambulance services in a good position. Because you operate in an attractive industry, there should be strong market demand from prospective buyers for your business. In addition to individual buyers, many private equity firms and rollup companies may be interested.
Qualifying Business Buyers
It's important to be able to qualify potential buyers who express interest in buying your ambulance service. As you well know, a healthcare background is all but essential for your buyer. They'll also need the skills to navigate a maze of rigid startup requirements including a fleet of reliable ambulances, a staff of trained EMTs & drivers, and accreditation. If a prospective buyer doesn't have the right background and ability, there's no sense in wasting time with them.
Advertising Your Sale
Successful ambulance service sales begin with a carefully planned advertising and promotional strategies. But if you think advertising your ambulance service will be the same as running a product promotion, think again. Multiple factors complicate business-for-sale advertising, not the least of which is the fact that you don't want your competition to know that your company is on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. Business brokers are skilled at publicizing ambulance service sales while maintaining the confidentiality that is critical to your business.
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized ambulance service buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Tapping Into Business Networks
Today's ambulance service buyers can be found in a variety of locations. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. But industry connections can also be a valuable source of leads. The downside of industry networks is that it leaves your company vulnerable to exploitation by competitors. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
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