Your Group Practice
Group practice valuation is one of the most misunderstood topics in mental health, and the reality may be confronting. In this solo episode of Your Group Practice, Dan King breaks down a hard truth many practice owners avoid: your business might not be sellable in its current form. Drawing on years of conversations with practice owners and real transaction experience, Dan outlines the four core factors that determine whether a buyer or investor will seriously consider your practice or walk away. First, profitability. Buyers are not buying revenue; they are buying profit. Without a meaningful profit threshold (often around $400K post-owner salary), the business becomes difficult to justify operationally and financially. Second, clinician commitment. In a people-driven business, stability and engagement matter. Practices built on inconsistent or low-hour clinicians signal fragility rather than strength. Third, payer concentration. While relying on a single high-paying payer may boost short-term income, it introduces significant risk. Buyers heavily discount revenue streams that lack diversification. Finally, founder dependence. If the business cannot operate without you, it cannot scale, and it becomes far less attractive to any serious investor. This episode is a direct, practical guide for practice owners who want to build something that lasts—and something that can eventually be sold. Transform Your Group Practice Actionable insights for practice owners and clinicians who want to lead, grow, or exit with purpose. This is the podcast shaping a stronger mental health system — one practice at a time. * Subscribe and listen to more episodes: https://yourgrouppractice.com/ * Want to be a guest? Reach out: info@yourgrouppractice.com About the Host Dan King is a lawyer turned private equity founder with a passion for fixing burnout in mental health. With a background in M&A, Shark Tank deals, and psychology, he now leads Fireside Strategic — investing in group practices that put people first. * LinkedIn: linkedin.com/in/danmking * Website: firesidestrategic.com
48 episodios
Comentarios
0Sé la primera persona en comentar
¡Regístrate ahora y únete a la comunidad de Your Group Practice!