Selling a medical business is a multifaceted process, with the value of digital assets playing an increasingly significant role in the valuation and attractiveness of your company. Whether you own a medical clinic or a medical device retail operation, your digital footprint can substantially influence the sale price. In fact, our agency has helped several medical businesses grow their digital assets to maximize their value when it’s time to sell, positioning digital properties as core components of their exit strategy.
But not all digital assets are created equal. It’s worth taking a moment to learn about the most valuable digital properties to build and maintain, and a key pitfall to avoid—over-reliance on SaaS (Software as a Service) platforms that don’t transfer well when you’re ready to sell.
What Are Digital Assets?
Digital assets refer to any online presence, system, or intellectual property owned by your business that can generate revenue, improve efficiency, or enhance patient or customer interaction. These include:
- Websites: A well-optimized, SEO-friendly website with high traffic and valuable content is an asset that continues to draw patients or customers post-sale.
- Patient or Client Databases: A secure, well-maintained database of patient or client information that’s compliant with privacy regulations (e.g., HIPAA in the U.S.) is a significant asset that can enhance recurring revenue streams.
- Proprietary Technology: Custom-built applications, telemedicine platforms, and patient portals that belong exclusively to your business can greatly enhance its valuation.
- Marketing Platforms: A fully developed and active digital marketing infrastructure—think Google Ads, social media accounts, and email marketing systems—can make your business more attractive by offering built-in revenue generation.
The Risk of SaaS Overload
While SaaS products have revolutionized medical businesses by streamlining operations, they often come with a catch: they aren’t truly owned by your business. This becomes problematic when it’s time to sell. SaaS platforms are subscription-based, meaning they don’t count as assets. The software itself belongs to the provider, and buyers will often need to renegotiate or re-purchase licenses post-sale.
For example, if your business is heavily reliant on a third-party SaaS platform for its billing or telemedicine services, those subscriptions may not be considered part of your company’s value. While these tools can improve operational efficiency, they don’t hold the same weight as proprietary technology developed specifically for your business.
Why Owning Your Technology Matters
When it comes to maximizing value during a sale, developing proprietary technology is a smart investment. Buyers are increasingly looking for turnkey solutions—digital properties that are owned outright and come with the sale, requiring no additional setup or licensing costs. Here’s why that matters:
- Higher Valuation: Custom-built platforms, whether patient portals, telemedicine systems, or appointment scheduling software, add intrinsic value to your business. Unlike SaaS products, these assets transfer fully to the buyer, increasing the overall valuation of your company.
- Less Disruption: With proprietary technology, there’s less risk of operational disruption post-sale. SaaS subscriptions, on the other hand, often require renegotiation or technical transition, which can cause delays and headaches for the new owner.
- Brand Equity: Ownership of custom technology builds your brand identity and makes your business stand out in a crowded marketplace. Buyers see this as a long-term advantage because they can continue to differentiate from competitors without needing to adopt third-party systems.
The Best Digital Assets to Build and Own
To ensure your medical business is as attractive as possible when you’re ready to sell, consider focusing on the following digital assets:
- Proprietary Software Solutions: Develop custom software for patient records management, inventory control, or patient interaction that is owned by your business.
- Online Presence: Your website, search engine rankings, and any proprietary content such as blogs, guides, or patient resources that consistently attract traffic and build your brand are valuable assets.
- Telemedicine Platforms: Custom-built telemedicine portals that integrate directly with your patient management system, allowing for seamless patient interaction and care.
- Patient Portals: If your business provides a patient portal for scheduling, follow-up, or billing, make sure it’s custom-built and fully transferable.
- Ecommerce Platforms: For medical device retailers, owning a proprietary ecommerce platform rather than relying on a third-party solution (e.g., Shopify) gives you an edge during a sale. The platform is not only an asset, but it also provides potential buyers with a ready-made revenue channel.
Avoiding the SaaS Trap
While SaaS platforms can be incredibly useful during the growth phase of a medical business, avoid making them the backbone of your operations. Instead, use SaaS tools as supplements to proprietary technology. If you must use SaaS solutions, make sure you have clear records on what will and won’t transfer to the new owner, and consider negotiating multi-year agreements that might enhance the attractiveness of the sale.
Our Expertise in Selling Digital Assets
We have experience helping medical businesses grow, maximize the value of their digital assets, and successfully exit. Our work spans medical clinics and medical device retailers, guiding them through every step of the process from digital marketing and asset development to sales execution. By focusing on building proprietary digital properties, we’ve helped our clients avoid common pitfalls, like over-reliance on SaaS tools, and positioned them for successful sales that maximize their business’s value.
Final Thoughts
Selling a medical business is more than just transferring a patient list and equipment. The assets that can provide the most value are often found online. Building and owning proprietary digital assets—such as software, patient databases, and online platforms—positions your business for a stronger exit. While SaaS tools can be helpful for growth, they do not contribute to the valuation in the same way that custom-built technologies do. If you’re looking to sell your medical business, start investing in the right digital assets now to ensure a smooth, profitable exit.
