Emerging Trends in the Private Practice Marketplace: Spotlight on Smaller Practices

1 Aug 2023

We are currently observing some notable trends in the private practice marketplace that could significantly impact your decision around future exit. In a marked departure from past trends, there has been a substantial increase in buyer interest for smaller practices. This represents a significant strategic shift for buyers and correlates with a rising difficulty in securing credit to finance acquisitions.

The surge in interest for smaller businesses, evidenced by a 22% increase in inquiries compared to the same period last year, is largely due to buyers’ efforts to buy businesses within their cash reserves range, sidestepping the need for traditional lender financing. We anticipate that this trend will persist throughout the remainder of the year, offering smaller practices an enhanced chance of sale.

However, it is worth noting that the wider market remains stable, with consistent interest across businesses of all sizes. Our London and South East clients are receiving, on average, around 20 expressions of interest, with some garnering upwards of 40. For our clients outside this region, the average number of expressions of interest stands at 15, with both groups seeing a conversion rate of approximately 25% from expressions of interest to actual offers. This level of activity affirms the enduring appeal of physiotherapy practices, both large and small, to potential buyers.

While larger practices continue to attract a significant pool of buyers, smaller practices are now similarly appealing. This is particularly beneficial for smaller practices who historically saw lower levels of buyer interest. With increased buyer interest, these smaller practices now have a greater chance of sale, adding a new layer of dynamism to the market.

As always, Verilo is here to provide tailored advice and guidance that aligns with market trends, ensuring you can navigate this landscape with confidence. Please do not hesitate to contact us should you require further information or support.

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