By: Diwakar Sinha, CEO, Polaris Healthcare Partners

Recent market activity has many group practice owners on edge. Market volatility is increasing given ongoing tariff activity, and conversations about a bear market and a potential recession in  2025 and beyond are ramping up. For owners considering a transaction in 2025, current conditions may have them wondering whether it’s the right time to sell—and what actions they should take.

First Things First

Group practices looking to transact in the near term may be feeling a healthy dose of fear— putting them in the same boat as 60% of Americans, according to a recent Gallup poll. It’s not unusual to feel anxious when the market changes dramatically. That said, the market is cyclical, and we’ve been here before. Typically, it’s wise not to make rash decisions and instead stay the course, particularly when we’re experiencing rapid and collective change. This advice also applies to those preparing for a transaction soon.

What You Can Do

Based on similar historical situations, we anticipate that transactions in the next 60–90 days may be slow or difficult to execute due to the market’s rapidly changing nature. If you are working toward a transaction, the next few months can be critical to preparing your business. There are several steps group practice owners can take to maximize their transaction value in any market environment. Focusing on these fundamentals can help ensure that leaders receive top dollar for their hard work, regardless of broader economic conditions:

  • Clean up your financials. If this hasn’t already been a priority, it needs to be. Practice owners should have at least three years of reviewed or audited financials available. This includes having a clear-eyed understanding of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
  • Prioritize lean operations. Lean doesn’t just mean cutting excess; it means optimizing systems and resources. Does your group practice consistently review key performance indicators (KPIs), such as production per provider or hygiene reappointment rates? This may also involve ensuring that scheduling and billing systems are operating efficiently, freeing up staff for higher-value tasks. Additionally, make sure clinical technology is being properly leveraged and applied.
  • Invest in your team. A successful transaction isn’t just about the numbers—it’s about patient loyalty, satisfaction, and trust. Retaining hygienists and clinicians, supporting continuing education, adopting new technologies, and fostering a strong team culture all contribute to your practice’s value. This may also include reviewing or implementing associate equity agreements.

Think Long Term

The market is cyclical. No matter when group practices choose to transact, there will always be potential benefits and drawbacks—much like deciding when to retire or sell a home. Instead of focusing on external factors beyond your control, now is the time to look inward and plan for the future. By cleaning up your financials, operations, and clinical excellence, you can move beyond short-term market cycles, and be in a position to be more resilient to volatility. When you focus on the long-term and take steps to strengthen your foundation, you’ll be best positioned to benefit, no matter what is happening in the market.