Timing Your Exit Strategy is Critical

Timing is also crucial in maximizing ASC value, yet many physicians wait too long to plan their exit strategy—potentially leaving money on the table. What many doctors don’t realize is that the optimal window to maximize your ASC's value is 5-10 years before retirement, when you still have leverage to negotiate the most favorable terms. Our expertise helps you avoid common pitfalls that can diminish an ASC's value.

The ideal timeline for either a strategic sale or real estate transaction falls between five and ten years before a target exit date. As you approach retirement, both ASC and real estate valuations tend to decrease as the timeline for your retirements draws closer. A longer timeline offers investors the security of stable returns over an extended period, significantly enhancing the value they assign to either asset.

Many physicians prioritize entering strategic partnerships, attracted by immediate cash infusion, the ability to retain control of their ASC, and the appeal of capital for business expansion and profit growth. Strategic partners typically provide valuable resources: capital infusion, recruitment expertise, enhanced payor contracts, new procedural capabilities, and improved vendor pricing.

In our experience, physician-owners generally benefit more by selling their ASC real estate before entering strategic transactions. This approach allows them to maintain 100% control over lease terms and day-to-day facility management. While preparation for both sales can begin simultaneously, real estate transactions typically conclude in six months, whereas strategic business sales often extend beyond a year.