Valuation Methodologies for Healthcare Services Business Owners

All business valuations are not created equal. Small business owners might be surprised to learn that the purpose of the valuation is what most influences the range of values placed on the business. There is no such thing as a one-size-fits-all valuation. Are you selling your company to another business? Do you require documentation for a divorce settlement? Are you bringing on another partner? The reason for the valuation will determine the methodology and scope of the analysis. We find that … [Read more...]

Important or Urgent?

I am sure most of you have read the Stephen Covey book, The Seven Habits of Highly Successful People. In that book Covey stresses that, as a person and a business owner, you need to make sure that you manage your time by spending a large portion of your day working on things that are "important" as opposed to consistently being pulled into the trap of working on things that appear to be "urgent." What some of you may not realize is that the concept and leadership lesson actually came from Dwight … [Read more...]

Don’t Be a Control Freak!

If you want to build a "high performing" organization that runs like a clock whether you are in the office or not, don't be a control freak! This is a challenge for many rehabilitation business owners as they are programmed to do for themselves. When evaluating and treating a patient, most of the work is required to be performed by a clinical professional. But, unless there are regulations that we are not aware of, there is no reason to be in the middle of everything that is happening in your … [Read more...]

Talent Wars in Physical Therapy Practices

I just read an interesting article about "talent wars," something we see very, very frequently in rehabilitation and other healthcare services companies. Should business owners promote from within or hire talent from outside the company? Case for Home Grown Talent For professional management positions in healthcare services, we have noticed much better results with properly trained, home grown employees vs. hiring from outside the company. Of course there is a process for grooming staff … [Read more...]

“The One”–Dealing With Disruptive Staff

How many of you can point to a single employee and/or manager of your firm who literally could sink the ship? We have seen this so many times and in so many organizations. And the worst part is that owners feel handcuffed by these employees and take too long to make a termination decision. We were talking to a client recently who had an incident of major insubordination by an employee. When we asked who it was, the owner stated, "It was the one!" How Does This Happen? It sounds simple. If … [Read more...]

The Negotiation Phase of the Enhanced M&A Process

In continuation of the four step "Enhanced " M&A process, today we will get into the "art" of a M&A deal--the negotiation. As with any negotiation, you must start with getting all of the information in order to prepare responses to any offers that have been made for the business. A full analysis of all offers is performed paying close attention to the "real" value of each offer, which requires a spreadsheet tool that will clearly display and compare each component of the transaction, i.e. … [Read more...]