How buyers usually price it
Small billing companies are usually priced as a multiple of either yearly revenue or yearly profit. For very small books, buyers often look at revenue. For larger ones with real profit and staff, profit matters more. Ranges vary widely by size, specialty and how much risk the buyer is taking on, so be wary of anyone who quotes you a number before seeing your figures.
What pushes the value up
- Clients who stay. Long relationships with low turnover.
- Signed contracts that can be transferred to a buyer.
- No single client dominating. If one client is half your revenue, buyers get nervous.
- A specialty focus. Buyers who specialize, like us with anesthesia, may value a focused book more.
- Clean records. Clear numbers, documented processes, business associate agreements in place.
- You're willing to help with the handover.
What pulls it down
- Clients on handshake deals
- Everything living in your head
- Recent client losses
- Compliance gaps, like missing business associate agreements
Headline price vs what you actually get
Two offers with the same headline can be very different. One might pay most of it at closing. The other might pay a little up front and the rest only if clients stay for two years. Read earnouts, explained before you compare offers.
Get a second opinion
A business broker, an accountant or a valuation firm can give you an independent view. We'd encourage it, even if you end up talking to us.
This is general information, not legal, tax or valuation advice. Talk to your own lawyer and accountant before you sell.
Our promise to sellers
How we'll treat you and your clients
- We sign an NDA before you share client names or numbers.
- Your clients hear about it from you and us together, after signing. Never before.
- Every term, including how and when you're paid, is written out in plain English before you sign.
- Your clients' fees don't go up for at least 12 months after the handover.
- If you're selling only your anesthesia accounts, we won't approach your other clients. We'll put that in writing.
- If we're not the right buyer, we'll tell you quickly and point you somewhere better if we can.