The 5 Biggest Mistakes Healthcare Owners Make When Preparing to Sell

Volume 12, Issue 10, May 20, 2025

By: Jack Turgeon, MBA, CM&AA

For most healthcare business owners, selling your company is one of the most important — and emotional — decisions you'll ever make. Whether you're operating in services, tech, or care delivery, it's easy to underestimate how complex the sale process can be.

At VERTESS, we've represented founders across the healthcare spectrum. And while no two businesses are the same, we've seen five avoidable mistakes that can dramatically impact deal outcomes — including sale price, timeline, and whether the deal closes at all.

I'll share these five mistakes and offer recommendations to help you avoid them when selling your business.

1. Waiting Too Long to Start Planning
   Many healthcare business owners delay exit planning because they're too busy, think the business isn't “ready,” or believe they'll know when the time is right. Unfortunately, the market doesn't always wait.

We've seen deals where external factors, like regulatory changes, payer reviews, and staffing issues, surfaced just as an owner was ready to go to market. In one situation, a major payer reversed payment decisions on a block of previously approved claims during diligence. While unrelated to the sale, the timing disrupted cash flow, delayed closing by several months, and forced deal terms to be restructured.

Avoid it: Start preparing early. Even if a sale is 1–2 years out, a conversation now can help you identify risks, strengthen value, and be ready to act when the opportunity is right.

2. Poor Financial Visibility (and No Quality of Earnings Prep)
   Many healthcare companies are run with a focus on tax efficiency, not buyer readiness. While that makes sense operationally, it can be a major roadblock during diligence.

We've worked with owners who believed they were generating millions in EBITDA, only to discover during a quality of earnings (QoE) audit that adjusted earnings were far lower, sometimes even break-even. In other cases, multiple QoE reviews failed to support the seller's original claims, leading to buyer re-trades or failed transactions.

Avoid it: Don't wait for a buyer to uncover issues. Work with your advisor to prepare a defensible financial package and run a sell-side QoE, if needed. Clean, accrual-based financials give buyers confidence and protect your valuation.

3. Overestimating Business Value and Future Earnings
   It's natural for owners to have strong expectations about the value of their business. But emotional attachment, over-optimism about future earnings, or reliance on hearsay multiples can set you up for disappointment.

We've seen situations where owners projected a strong finish to the year — and adjusted pricing accordingly — only to fall short of forecasts, requiring a painful price reset late in the process. This erodes buyer trust and adds unnecessary tension to closing.

Avoid it: Let the numbers lead. Use trailing 12-month performance as a baseline and be realistic about projections. Your M&A advisor can help bridge the gap between aspiration and market expectations.

4. Telling Staff Too Early
   Sharing news of a potential sale with your company's staff too early — even with good intentions — can backfire. While transparency with your team is important, timing is everything.

We've supported clients who announced their transaction to staff before signing a letter of intent, only to have key employees — including clinical and operational leaders — leave before the deal closed. This not only disrupted operations but also raised red flags for the buyer, who questioned the business's ability to retain talent through a transition.

Avoid it: Develop a strategic communication plan with your advisor. Limit early disclosures to essential team members under NDA and wait until deal terms are firm before sharing more broadly. Maintaining continuity and calm during the process is critical to preserving value and getting to the finish line.

5. Making the Business Too Dependent on the Owner
   If your business can't function without you, buyers will see risk — and discount what they offer accordingly. Buyers are looking for systems, leadership teams, and documented processes that allow for a smooth post-transaction handoff.

We've seen deals where the absence of a second-in-command or clear operational playbook created serious buyer hesitation. Even with strong financials, transition risk can drag down value or delay closing.

Avoid it: Invest in leadership, empower others, and systematize your operations. If you're the only one who knows how things run, that's a liability — not leverage.

Bonus Mistake: Going It Alone
We've had countless conversations with sellers who attempted to run a deal themselves or hired a generalist broker with no healthcare experience. The result? Missed red flags, underpriced deals, or failed closings.

The stakes are too high to wing it — and too complex to learn on the fly.

Avoid it: Partner with an experienced M&A advisor who knows the healthcare space. A good advisor won't just find you a buyer — they'll help you find the right one, structure a clean deal, and navigate every twist and turn along the way.

The Key to a Successful Healthcare Business Exit Strategy
Selling your healthcare business is one of the most significant financial decisions you'll ever make. The key to doing it well isn't luck — it's preparation.

If you're starting to explore your options, even quietly, we're here to help. VERTESS specializes in healthcare transactions, and we are recognized as one of the leaders in providing expert guidance concerning mergers and acquisitions in the healthcare industry. We work with owners across the country to ensure they get the value and exit they deserve.

Reach out to us today, and let's start a confidential conversation.

Jack Turgeon, MBA, CM&AA

As a Managing Director at VERTESS, I bring extensive experience in sales, consulting, and project management from early-stage startups. With an MBA from Babson College, I have a strong foundation in business strategy, operations, and financial analysis. My personal connection to behavioral healthcare through a family member motivates me to help business owners get the best deal possible while ensuring high-quality care for their clients. Throughout the M&A process, I provide comprehensive support at every step. I have a proven track record in negotiations and client management after working with companies in various industries. I’m excited to join VERTESS and make a meaningful impact on the lives of the owners I work with.

We can help you with more information on this and related topics. Contact us today!

Email Jack Turgeon or Call: (781) 635-2883.