Selling your psychiatry practice may be the most important financial decision of your life. Buyers are paying record premiums, but capturing full value requires preparation.
Here are 9 steps to take before you engage buyers:
1. Get a Clear Valuation
Start with a baseline estimate. Buyers evaluate earnings, recurring revenue, and growth potential.
👉 Try our free Psychiatry Practice Valuation Calculator.
2. Clean Up Your Financials
Organize financial statements, tax returns, and add-backs. Transparency reduces buyer pushback.
3. Strengthen Leadership
Reduce reliance on the owner. A capable management team boosts valuation and reassures buyers.
4. Review Compliance and Licensing
Make sure state and federal requirements, credentialing, and payer contracts are in order.
5. Optimize Operations
Streamline scheduling, billing, and patient intake. Operational efficiency translates into stronger multiples.
6. Diversify Revenue
Recurring revenue, strong payor mix, and multiple service lines reduce risk in buyers’ eyes.
7. Protect Patient Retention
Loyalty and continuity of care are critical. Document referral sources and patient retention metrics.
8. Identify Growth Opportunities
Buyers pay premiums for practices with clear expansion potential — new locations, telepsychiatry, or service lines.
9. Assemble the Right Advisory Team
Don’t go it alone. Work with an M&A advisor who specializes in healthcare and has access to premium buyers.
Final Thought:
Preparation isn’t just about paperwork. It’s about positioning your practice as an attractive, low-risk, high-growth opportunity. Done right, these steps can add millions to your exit.
