What a buyer asks a billing owner
- How much notice can a client give to leave?
- Short notice terms let practices walk after a sale. Buyers read every contract for notice periods and any clause about a change in owner.
- What share of fees comes from your largest client?
- A hospital group or big clinic over about a fifth of revenue makes buyers ask for terms tied to keeping that account.
- How do you protect patient data?
- They want your security practices, past incidents, and signed business associate agreements with each client.
- Who talks to the doctors every month?
- If the practice managers only know you, buyers worry the relationships do not carry over.
Clients are the asset
A billing company has little equipment. What a buyer pays for is the stream of monthly fees from practices, and how likely those practices are to stay.
Make a client list with monthly fees, years with you, specialty and contract terms. Long relationships with clinics that have grown alongside you are the best thing you can show.
- Signed service agreements for every client
- Fee structure: percent of collections, flat fee or per claim
- Notice terms and any clause about a change of ownership
- Clients lost in the last three years and why
Results buyers can check
Practices stay because you collect their money. Buyers ask for collection rates, days in accounts receivable and denial rates by client. If you track these in reports you send each month, share samples.
Numbers that improved after a client joined you are proof you add value, and that proof is what keeps clients through a sale.
Concentration and the local market
El Paso has a deep healthcare community, from independent practices to large groups and the clinics that serve military families tied to Fort Bliss. Many billing firms grew by serving a few big groups.
If your top few clients are more than about 15 to 20 percent of fees, buyers may lower the price or tie part of it to those accounts staying. A buyer may ask you to stay on as a consultant, or to take part of your payment later.
Data, systems and compliance
Buyers check how you handle patient information, what software and clearinghouse you use, and whether those contracts can move to a new owner. A data breach or audit in your past is better disclosed early than found in diligence.
Your business associate agreements with practices may need consent to assign in an asset sale. The attorney should read them before you sign a letter of intent.
The team that does the work
Certified coders, billers and account managers are the engine. Buyers ask about turnover, pay and whether staff can work a client's account without you. Bilingual staff who handle patient balance calls in Spanish are a plus.
If employees move to the buyer, read our guide on the TWC tax account after a sale.
Price and timing
Recurring fees and low client loss tend to earn a better multiple than project work. See how buyers price a business, and the timeline for how long most sales take.
Want to know what your billing company could bring? Request a valuation or call (915) 555-0193.