When Should I Start Preparing to Sell My Healthcare Business?

When Should I Start Preparing to Sell My Healthcare Business?

One of the most common questions we hear from founders is:“When should I start getting ready to sell?”

The honest answer: earlier than you think.

Many healthcare businesses could achieve higher valuations, smoother sales, and stronger legacies, simply by starting the preparation process well in advance.

Here’s how to think about timing and the steps that make the biggest difference.

1. Start 12–24 Months Before Your Ideal Exit

If you want to sell in 6 months’ time, it’s already tight. Most founder-led healthcare businesses benefit from a year or more of preparation, particularly if you want to:

• Improve EBITDA before a buyer sees your numbers

• Reduce reliance on you personally

• Resolve any compliance or structural weaknesses

• Explore all buyer types, including private equity and trade

You don’t need to announce anything, just begin laying the groundwork quietly and strategically.

2. Use Growth or Stability as a Signal

Buyers are most attracted to businesses that are:

• Still growing - predictable, scalable earnings make deals easier to fund and justify

• Plateaued but stable - if growth has slowed but EBITDA is solid, a buyer may see this as a platform to scale

If you wait too long and profits begin to decline, valuations typically fall faster than most founders expect.

3. Plan Around Your Own Goals

Founders often underestimate how emotionally and practically involved they are in the business. Ask yourself:

• Do I want a full exit or a partial sale with some involvement post-deal?

• How much do I want (or need) financially to walk away comfortably?

• What will I do after the business is sold?

Clarity on these points helps shape the right deal structure, but also helps you time the sale in line with your personal journey.

4. Time the Market (But Don’t Try to Predict It)

It’s natural to want to “sell at the top”, but most founders aren’t short-term market timers. Instead, look for:

• Steady buyer appetite in your sector (e.g. private equity entering mental health, dental consolidation, homecare growth)

• Strong trading in your business (ideally at or near record EBITDA)

• No major known headwinds (e.g. loss of key contracts, regulatory change)

Good businesses with clear financials and strong management always attract interest.

5. Get Your House in Order Quietly

You don’t need to go to market to start preparing. In fact, the best exits come from preparation behind the scenes.

Focus on:

• Strengthening your finance function and producing reliable monthly data

• Reducing day-to-day reliance on you or a few key individuals

• Locking in contracts, accreditations and long-term income

• Preparing forecasts that support the story a buyer will need to believe

6. Speak to an Advisor Early, Even If You’re Not Ready to Sell

Founders sometimes worry that calling an M&A advisor will trigger pressure to sell. It shouldn’t.

A good advisor will:

• Help you understand what your business is likely worth today

• Highlight what might improve valuation with time

• Talk you through realistic deal structures based on your goals

• Help you build a roadmap for a sale in 12–36 months’ time

Final Thought

The best time to start preparing to sell your healthcare business is well before you're ready to leave.

Whether your goal is to maximise value, create options, or simply avoid surprises - preparation gives you more control, better outcomes, and a clearer path forward.

At Eclipse Corporate Finance, we work exclusively with UK healthcare founders and can help you plan, prepare, and execute the right exit on your terms.