What sellers are thinking?


Selling a business is an emotional time for a small business owner. Because of the current climate in the DME industry the seller has to weigh the work that they've put into the business against the likelihood that they'll be able to continue to function either being locked out of their Medicare market or at the new reimbursements.

Here are some scenarios to help you understand the sellers motivations

THE SELLER DID NOT WIN

If the seller did not win Medicare contracts their business is likely heading for a tough future which may not be survivable. This type of seller will likely be highly motivated. In this type of transaction you will be purchasing the business assets and acquiring their existing patient base.

THE SELLER WON, BUT NOT EVERYTHING

This seller (assuming they accepted the contracts) may have an existing business in the bidding area but did not win enough contracts to stay viable.

THE SELLER WON, OUTSIDE OF THEIR CBA

Because of the rules of the program, a company may have won contracts outside of their territory - but in an area that you need them. You should realize that purchasing this company will require that you service any areas that this company accepted contracts in (these can be subcontracted).

THE SELLER WON EVERYTHING

This seller may have a viable business, and all of the contracts but not believe that their business model will be sustainable at the new reimbursements.

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