What's my business worth?


Putting a value on your business is a complicated undertaking. Most business owners are familiar with the "multiple", or a value per patient concept. While these are easy concepts to grasp, we do not think they are an accurate representation of your businesses value.

There are many elements that a savvy buyer will review to determine the value of your company. We've taken each of these elements and built a calculator that helps you do the same math they will.

THE VALUE OF A MEDICARE CONTRACT

The value of a Medicare contract is often misunderstood by both the holder and the company desiring to purchase it. There are different motivations for each side.

First, a Medicare contract has a defined term (36 months) and is for a limited geographic area. In addition, Medicare has published the product utilization for each of these areas.

 

So, based on your market share (or estimate) we're able determine what the value of that contract would be worth to you. This calculation works for both the buyer and seller.

You see, if a buyer has a larger market share there is an opportunity cost involved with not having the contract.

 

HOWEVER, THAT BUYER MAY NEED A CONTRACT - BUT ONLY ONE. FURTHER, IT CAN BE THE LEAST EXPENSIVE CONTRACT (COMPANY) THEY CAN FIND.

Finally, Round 1 of the bidding program taught us that winning a contract is no guarantee that new business will come to you. Many believed that a contract was essentially a "golden ticket" that would generate referrals without marketing.

THESE COMPANIES QUICKLY LEARNED THAT WINNING A CONTRACT DID NOT INCREASE THEIR BUSINESS.