Frequently Asked Questions
Your practice is worth more than you think! DSOs, MSOs and PEG’s value practices based on a multiple of free operating cash flow (aka EBITDA). In general, multiples climb as EBITDA grows.
- $1M EBITDA sells for 7x multiple = $7M Total Enterprise Value
- $5M EBITDA practice sells for 10x multiple = $50m Total Enterprise Value
Transactions are complex and time consuming. Having a representative and advocate will save you time, maximize your deal value, and get you the best structure possible.
TUSK’s seasoned analytics team rebuilds your financials from the general ledger up, identifying every penny that can be added back to maximize your EBITDA. Without an analytics team fighting for your EBOTDA, buyers can layer on additional costs or exclude meaningful add-backs form their buyside analysis.
Unlike most practice advisors, TUSK is not paid by the buyer’s. TUSK is paid a success fee at the close of your transactions. If you do not sell your practice, you don’t owe us a penny.
Because our success is a percent of Total Enterprise Value, we are 100% aligned with your goals, working side-by-side with you to maximize your EBITDA and your multiple.
We bring 4 or more offers to the table for the vast majority of our sellers.
A competitive marketed process typically takes 6-9 months from signing of TUSK’s engagement agreement to close of the transaction.
Preparation 4-6 weeks
- TUSK + client kickoff call
- Populate virtual data room
- TUSK deep dive into financials
- Develop initial valuation model
- Add-back call
Marketing 4-6 weeks
- Finalize valuation model
- Develop marketing materials
- Announce deal to buyside
- Get NDA’s signed
- Grant buyer access to virtual data room
Bids 8-10 weeks
- Calls with prospective buyers
- Receive, review, and model offers
- Recommend, select, and notify continuing participants
- Conduct in-person meetings with final buyer pool
- Negotiate best deal terms
- Sign LOI
Exclusive Diligence 12-16 weeks
- Quality of Earnings
- Legal diligence
- Negotiate final deal terms
- Close transaction
It is important to align not only on the valuation they’re giving you for your business, but also on the team, their track record, their timeline, their strategy, and their culture. Most of our sellers stay on for 3-5 years post close and roll 20-40% of their equity into the future partnership, so it is important to be aligned with the DSO or PEG that buys your practice.