Healthcare professionals, like many other business owners, can have unrealistic value expectations and believe their business is worth more than it truly is. The high-value expectations are driven by the significant amount of recent M&A activity in healthcare services. In particular, there has been a tremendous amount of consolidation in pharmacy, dental, veterinary, physiotherapy, and other healthcare practices.
Furthermore, some healthcare practice owners are looking to sell and retire. However, given healthcare services are relationship-driven, retiring immediately doesn't allow for an appropriate amount of transition—which can lead to price deterioration and owners' value expectations not being met.