One question many chiropractors face when nearing their desired retirement or transition goals is simply this: “is it a good time to sell a chiropractic business?”
As most DC’s are familiar with stock market surges, a buyer or seller’s market in real estate and similar “timing” issues where one looks to capitalize on the trend of the day, it makes sense that those looking to exit the chiropractic profession would want to leave at the right time too.
While the simple answer may be that it is more important to time your transition according to your practice performance, the question still stands regarding market timing. So here’s the quick and easy answer in regards to whether this is a good time to sell a chiropractic business…in 2019.
The Best Time to Sell a Chiropractic Business in a Long Time
According to a recent survey from The Market Pulse, conducted by the International Business Brokers Association, studies have confirmed that NOW is a remarkable time to sell a business.
Survey results found that roughly 21% of advisors said 2018 was the best year yet for business owners to sell their businesses and our data with respect to whether this is a good time to sell a chiropractic business would definitely agree.
Digging a little deeper, the IBBA survey found that another 37% of transition professionals (business brokers, exit strategy advisors, transition consultants) say that now is the best time they have seen in five years and an additional 17% say this is the best time in the last 10 years.
If you add all of those opinions together, that equates to 75% of professionals who are in the business of selling businesses would agree that NOW is an excellent time to sell a chiropractic business – or any business for that matter.
In fact, according to Craig Everett, PhD who is director of the Pepperdine Private Capital Markets Project “The current environment means there may never be a better time to sell your business.”
Reasons Why This is Such a Good Time to Sell a Chiropractic Business
Naturally, the inquisitive chiropractor would want to know WHY it’s such a great time.
Here Mr. Everett offers a straightforward explanation: “Capital is readily available from lenders, private equity firms, and family offices, and existing companies have record cash sitting on the sidelines. Interest rates are still relatively low, the economy is going strong, and business confidence remains high. Well-run companies are doing well in the market right now.”
For the readers of this blog, you’ll note that we predicted this upturn in the market back at the start of 2018, when the SBA changed its lending parameters which created a much better opportunity for buyers to obtain funding. As a result, 2018 was a strong year – and 2019 looks to continue the same trend.
If you are considering a chiropractic practice sale in the near future, 2019 may be an excellent time to sell a chiropractic business.
Before you take that big step, check out our FREE WEBINAR Exit Essentials: 10 Factors That Affect the Value of Your Chiropractic Practice Sale or Transition for more info on how to maximize the value of your chiropractic practice and minimize costly mistakes.
Or if you know the time is NOW, contact us today – we’d be glad to help you reach your goals and time them right!