A BETTER EXIT

The reality: selling an independent medical clinic often isn’t as attractive in the market as it seems. (Typically, the multiples are disappointing.) The opportunity: there is a better way.

IN A NUTSHELL

Selling Your Practice — From a Position of Strength

At AreMed, we understand the intricacies of practice valuation—and how the M&A and private equity world truly operates. It’s a complex, often chaotic environment filled with opportunistic players who may not have your best interests at heart. Maximizing your exit isn’t about luck; it takes a clear, strategic plan rooted in strength and experience.

Frequently Asked Questions: Selling or Exiting a Private Practice

Q1: Why are valuation multiples typically low when selling through a business broker?

A: Business brokers typically market practices to individual buyers who rely on traditional bank or SBA lending. This means the buyer must prove that the clinic’s cash flow can cover the loan payments—limiting the sale price. Additionally, the buyer pool is small, often consisting of other physicians who must work in the clinic themselves, essentially "buying a job" more than a business. On top of that, any challenges your practice faces (staffing, reimbursement, overhead) become the buyer’s problem, further lowering perceived
value. Don’t just take our word for it—visit BizBuySell.com to browse real-world listings. The comparables (comps) are often eye-opening.

Q2: What about selling to private equity?

A: Selling to private equity can work—but it often comes with strings attached. Many of these deals are structured heavily in stock or earn-outs, meaning you're betting on the buyer’s future performance, not getting paid upfront. Physicians frequently lose control over how they practice, as private equity firms prioritize ROI for investors over clinical autonomy. Worse, deals are often pitched with high initial valuations, only to be reduced after due diligence. We’ve seen many physicians waste months in private equity courtships
that went nowhere. The bottom line: private equity isn’t always the golden ticket it appears to be.

Q3: I’m a doctor, not a mergers and acquisitions expert. How do I know if the offer I’m getting is fair—or even legitimate?

A: That’s an important—and wise—question. Many doctors are highly skilled clinicians but understandably unfamiliar with the M&A world, where tactics can be opaque and one-sided. At AreMed, we routinely review acquisition offers on behalf of clients. Most are underwhelming, and we tell you when that’s the case. But when we do see a strong offer, we help you negotiate better terms. This advisory support is built into our management services model—because protecting your legacy and financial future shouldn’t depend on guesswork.

Q4: What makes the AreMed rollup model different?

A: AreMed takes a physician-first approach. Instead of selling your practice as a one-off transaction, we help you improve performance and become part of a larger rollup of high-quality clinics. Selling 100 clinics together achieves far higher multiples than selling alone. The result? Stronger valuations, more leverage, and better terms. Our model allows you to retain clinical autonomy, choose your level of participation, and determine your ideal exit timeline. Rather than handing the upside to private equity, you share in the gains. It’s a win-win-win—for your finances, your freedom, and your patients.

FAQS

Question 1: How does AreMed™ help clinics increase profitability?

Answer: Our proprietary Profitability 5™ framework pinpoints key areas where your clinic may be underperforming—such as billing, staffing, and marketing. We implement targeted solutions, including optional Bolt-On Clinics™, to boost revenue, improve margins, and strengthen overall clinic performance. Our goal is simple: handle the business side so you can focus on what you do best—practicing medicine.

Question 2: What are Bolt-On Clinics™, and how do they work?

Answer: Bolt-On Clinics™ are turnkey service lines—such as wellness optimization, regenerative care, wound care, and post-stroke recovery—that seamlessly integrate into your existing practice. They leverage your current space, staff, and patient base to generate new revenue with minimal disruption. We offer several proven options and will work with you to determine the best fit for accelerating your clinic’s growth.

Question 3: What makes AreMed™ different from private equity consolidators?

Answer: Unlike traditional private equity groups, we don’t buy out physicians or compromise clinical autonomy. Our model protects your medical decision-making while strengthening the business side—so you stay in control and benefit from long-term equity growth. Whether you're years from retirement or exploring options now, our flexible model adapts to your goals and offers a superior, more physician-friendly exit strategy than typical consolidators.

Question 4: Do physicians have to sell their practice to work with AreMed™?

Answer: No. We offer both MSO-only partnerships and equity + MSO options, allowing you to choose the path that best aligns with your goals—whether that means offloading business operations now or planning for a stronger, future exit. Our approach is flexible by design, but one thing remains constant: you stay in control and at choice—a level of flexibility rarely offered in traditional models.

Question 5: What type of returns do investors typically see?

Answer: We target a 20–35% IRR through our Clinic SPV rollup strategy, driven by real EBITDA growth and targeted exit multiples ranging from 10x to 16x. Investments are structured as convertible debt with built-in equity kickers, offering strong long-term upside. The result is a return profile competitive with traditional private equity—but backed by a model that promotes stronger physician alignment and collaboration, both now and into the future.

Email: [email protected]

Phone: 303-949-7886

Address: PO Box 12102, Kansas City, MO 64153