If you're starting to think about selling your durable medical equipment (DME) company, you're likely feeling a mix of excitement, uncertainty, and maybe even a little pressure. For most owners, this isn't just another business decision. It's the culmination of years — often decades — of hard work, long hours, personal sacrifice, and significant investment.
I've had the opportunity to be part of leadership teams for several companies that ultimately sold, and in each case I served in a sales or growth leadership role throughout the process. I've also worked alongside many DME owners as they've navigated this decision. What I've seen time and again is that the strongest outcomes don't come from rushing to market. They come from preparation in the form of thoughtful, disciplined work done well before a company is officially for sale.
Below are eight steps I believe every DME owner should take before going to market. These steps won't eliminate every challenge you will face in a transaction process, but they will significantly improve the odds of achieving the right valuation, attracting strong buyers, and completing a successful sale to the right partner.
1. Get your house in order before a buyer forces you to
When you run a business, it's easy to focus on what's directly in front of you each day: serving patients, managing staff, dealing with vendors, and keeping operations moving. But once you decide to explore a sale, you need to shift your mindset and start looking at your company the way buyers will.
Buyers will dig deeply into your financials and operations. They'll review balance sheets, income statements, and cash flow. They'll analyze key metrics, employee and payor contracts, assets, internal processes, and the legal structure of the business. Their job is to find risk, friction, and anything that could impact value.
I encourage owners to proactively put themselves in a buyer's shoes and ask some uncomfortable questions. What might raise a red flag? What could slow down diligence or create concern? Are there inconsistencies in the financials? Are operating expenses unusually high? For example, will buyers question why your operating expenses exceed 40%?
The goal here isn't to achieve perfection. It's to identify issues early and address what you reasonably can, especially the low-hanging fruit. The more work you do ahead of time, the fewer surprises there will be later, and the more confident buyers will feel about moving forward with making a strong offer.
2. Identify your vulnerabilities and be honest about them
Every business has vulnerabilities. A mistake I see many DME owners make is assuming buyers won't notice them or that they can be explained away later. In reality, buyers are impressively good at finding weak spots, and unaddressed vulnerabilities often become negotiating leverage.
This step ties closely to getting your house in order, but it deserves its own focus. Are any of your payor contracts vulnerable to compression? Are there upcoming regulatory changes that could impact reimbursement? Is new competition entering your market with products or services that could put pressure on your margins?
You also need to look internally. Are there operational dependencies on a small number of people? Is there anything "under the hood" — from compliance to systems to vendor relationships — that could be viewed as a weakness?
Once you identify vulnerabilities, you have two choices. If something can be fixed, fix it. If it can't be easily addressed, develop a clear and credible strategy for how you will manage or overcome it. Buyers don't expect a flawless company, but they do expect transparency paired with a thoughtful plan for addressing shortcomings and achieving improvements.
3. Develop and clearly communicate your growth story
Profitability is important, but growth potential is often what truly drives valuation. Buyers want to understand not just where your business has been, but where it's going — and how it gets there.
As you prepare for a sale, you should spend time developing a clear growth narrative that looks 3–5 years out. What differentiates your company in the market? How are you positioned relative to competitors? Where are the opportunities to expand sales, improve payer relationships, or increase margins?
In my experience helping develop confidential information memoranda (CIMs), this is where a good amount of time should be spent. When we worked on CIMs for companies I helped sell, the focus was often on questions like: What is our secret sauce? How can we expand sales? How can we broaden payer contracts? Where can we buy smarter to reduce expenses?
A compelling growth story doesn't just explain opportunity. It shows buyers how they can unlock additional value following a transaction. And in many cases, that story is the difference between an average outcome and a premium multiple.
4. Understand value from the buyer's perspective, not just your own
Nearly every owner I've worked with has a dollar figure in mind when they think about selling their company. Sometimes that number is achievable. Sometimes it's exceeded. And sometimes it needs to be recalibrated.
Valuation isn't just about historical performance. It's about how a buyer views your company and how they plan to use it after the transaction. A private equity platform may value scalability and acquisition potential. A strategic buyer may value geographic reach, product mix, or operational synergies.
I encourage owners to think carefully about who their likely buyers are and what those buyers are trying to accomplish. Ask yourself: What immediate problem does my company solve for a buyer? What longer-term goals does it support?
Understanding buyer motivations allows you to position your company more effectively in the CIM and throughout the sales process. It also helps establish realistic expectations and avoids disappointment later. This is an area where experienced transaction advisors, like those here at VERTESS, can provide valuable perspective and guidance.
5. Assemble the right transaction team
For most DME owners, selling their company is a once-in-a-lifetime event. It's also a complex process with plenty of opportunities for missteps.
It's not uncommon for owners to hesitate about bringing in outside help, especially when advisory fees come directly out of the seller's pocket. But in my experience, the right team almost always pays for itself, and then some.
An experienced DME M&A advisor helps owners identify challenges, highlight opportunities, prepare and position the business, and create competition among buyers. Most operators simply don't have experience preparing a CIM, marketing it effectively, or reaching the full universe of qualified buyers.
In addition to a healthcare M&A advisor, owners should engage an accountant and legal counsel with specific healthcare transaction and DME expertise. Having the right team in place can shorten timelines, reduce stress, avoid mistakes, and materially improve outcomes.
6. Create competition by casting a wider net
Many owners begin the sales process with a short list of companies and people they believe might be interested in acquiring their company. While that can be a starting point, it shouldn't be the entire strategy.
Limiting your buyer pool limits competition, and limited competition almost always limits valuation. Casting a wider net brings in different types of buyers — financial, strategic, regional, national — and creates the competitive tension that drives stronger offers and better terms.
This is one of the most important advantages of working with an experienced M&A advisor who understands the market and has access to a broad network of DME business buyers.
7. Keep your management team focused on running the company
Your management team will be involved in the transaction process, particularly during CIM development and due diligence. But one of the most damaging mistakes an owner can make is allowing the deal to distract leadership from running the business.
Day-to-day performance still matters — perhaps more than ever. Sales, service delivery, growth initiatives, and ongoing execution of the strategic plan must remain the top priority. Any decline in performance during the transaction process can raise concerns, negatively impact value, and even derail a sale.
The goal is balance: Involve management where necessary but keep their primary focus on operating and scaling the business.
8. Be clear about your role following the transaction
Before you go to market, you should be honest with yourself about what you want after the deal closes. Do you want a full exit? Do you want to remain involved in operations? Are you interested in a board role?
Your answers will influence the types of buyers you pursue and how attractive your company is to them. Some buyers want owners to stay on; others prefer a clean transition. Clarity upfront helps align expectations and avoids risky surprises late in the sales process.
Careful Preparation Is What Drives Successful DME Transactions
When owners decide it's time to sell their DME company, the urge to move quickly is understandable. But in my experience, rushing into a sale inevitably does more harm than good. The owners who take the time to prepare — to strengthen their business, understand their value, and assemble the right transaction team — are the ones who achieve the best outcomes.
If you're thinking about selling your DME company, or even just beginning to explore your options, having an experienced partner early can make a meaningful difference. The team at VERTESS works closely with DME owners nationwide to help them prepare, position, and successfully sell their businesses. A conversation with us today can help ensure you're ready when the time is right.