Executive Medical Transportation Business Valuation

If you're thinking of purchasing an existing medical transportation business or selling an existing NEMT business you need to consider investing in an “Executive Business Valuation.”                    

What is an Executive Business Valuation (EBV)?  

An EBV is a general valuation of the business being bought or sold to help determine realistic value, strengths, weaknesses, and potential problems.  It's not uncommon for possible market opportunities to be uncovered during the valuation process.


I have been blessed to work with and assist an untold number of entrepreneurs on both sides of the acquisition, buyers and sellers.  The problem is many business owners wait to contact me AFTER the closing when they realize they made a bad deal.  My staff and I are then retained in an effort to play “clean up duty.”                    

As you can imagine, I have seen some very bad deals over the years.  Many providers place themselves at a financial disadvantage because they either overpay, undervalue, or simply agree to ridiculous terms.  

But I don’t always blame the owner.  Many business owners, although well intentioned, can be rather naïve.  They retain and listen to an attorney or business broker with no experience in the NEMT industry to help sell/buy their business.  As a result, because the attorney/broker has no concrete understanding of dynamics in the NEMT industry or associated multiples, the loser always ends up being my client, the NEMT provider. 


Most brokers move forward using generic formulas and analytics to create the highest asking price so they can earn the greatest commission.  Unfortunately, traditional formulas and analytics don't apply to the NEMT industry.  Why – because this is NOT a traditional industry!                    

If valuing a McDonald's franchise in New York, Florida, California, or any other state, the business broker can apply industry-specific multiples based on franchise and location analytics.  But again, universal multiples and analytics don’t apply to the NEMT industry.  The reason is simple, the NEMT industry is unique!     


In the NEMT industry, there are vast variations by state and local market dynamics.  The lack of continuity with legislative policies between states and counties could not be greater.  Then, factor in the extreme expansion of the federal Medicaid system with associated broker variables and you quickly realize the valuation process for NEMT acquisitions is extraordinary.  Thus, traditional formulas do NOT apply.                      


Hello, I would like to take this opportunity to share our experience with Joel and the purchase of our business. The seller was asking $950,000 and we verbally agreed on $850,000. My wife had some reservations and insisted that we retain Joel’s help.  If for no other reason she insisted we try to get confirmation on the value of the business. I do have to admit I was against the idea but am very pleased I trusted in my wife’s persistence.                           

Joel reviewed many aspects of the business and was adamant we were overpaying because of the type of contracts and the condition of the fleet and other factors.  I was somewhat stubborn and disagreed because I thought it was a good opportunity but my wife was more relieved and insisted we don’t purchase the business. 


Joel insisted that if we were prepared to invest that much money we should start our own business. About six months later while we were in the process of starting our own NEMT business the seller approached us again to see if we were still interested in buying his business.  This time he had reduced the price down to a shocking $500,000.  With Joel’s help we ended up purchasing the business for $450,000, almost half of what we were prepared to pay earlier in the year.  

On behalf of my wife and me, I encourage anyone thinking about enlisting Joel’s help to do it. It was the best investment we made, despite my initial reservation. We are living proof that Joel knows this business and knows what he is talking about. 

Thank you Joel for your help and support.                             

Ken and Gloria, Florida 

When should I consider an Executive Business Valuation?

  • Prior to selling your business to help determine Fair Market Value (FMV)                  
  • When you are considering the acquisition of an existing NEMT business
  • Prior to retaining a business broker or attorney to sell your business
  • When you are considering an exit strategy for an existing business
  • If there is a dispute or separation of principal owners to help determine FMV
  • If you are interested in increasing the FMV for prospective buyers

Needless to say, an EBV is going to save you a lot of money and save my staff and me a lot of time in having to play "clean up duty."


What do I need to prepare for an Executive Business Valuation?

After making your investment, my staff will email you a questionnaire. Please be as detailed as possible in answering each applicable question so I can learn as much as possible about the business.                    

I will also need you to email me the following information:

  1. Profit/Loss statement for each of the last three years of the prospective business
  2. Year-to-date Profit/Loss statement of prospective business
  3. Itemized list of fleet vehicles to include make, model, year, mileage, and seating capacities
  4. If serving as a subcontractor to and broker, a copy of the Transportation Agreement
  5. Copies of any/all contracts or service agreements maintained by the business

It is imperative that you provide me with accurate and well organized information. 

My valuation is derived from the information you provide so PLEASE ensure your financials and associated information are detailed, accurate, and organized.                    

If you don’t have all of this information readily available you need to contact the seller, your accountant, bookkeeper, office manager, or whomever to gather this information.  I cannot derive a sound valuation based on incomplete/incorrect data.     


After receiving your information, chances are very good I will have additional questions.  If so, I will email you for insight. 


Preparing the Executive Business Valuation

Using the information and insight you provide, I will prepare a written valuation several pages long featuring my determinations.  You will want to retain and share this valuation with business partners, possible investors, or financiers.  If you anticipate retaining a business broker to help list and sell your business (which I don't always advise) you will want to share this valuation with the broker prior to developing the asking price.


Be advised, I am going to be blatantly  honest. My job is NOT to tell you what you want to hear.  Rather, my job is to provide you with an unbiased valuation and assessments so you have realistic expectations whether buying or selling.


If you are working to purchase an existing NEMT business and I determine the asking price is not realistic - you will know!  If you are selling an existing NEMT business and you are either over or undervaluing the business - you will know! 


To be clear, this valuation is an assessment of the business and is NOT a business plan.  If you are seeking financing, you still need to develop a formal business plan outlining strategic planning.

The cost of an Executive Business Valuation

The cost for development of an EBV is a single investment of $1,500 and includes all required time to review your various information, necessary correspondence with you, and preparation of the actual valuation.        


Your completed EBV will be delivered via email as a PDF.  Although I cannot guarantee a specific delivery date, the more organized, thorough, and quickly you are able to provide me with necessary information, the more quickly I can complete your Evaluation.                                     

Because this is a personalized service that requires considerable time and preparation, no partial payments will be accepted and no requests for refunds, under any circumstances, will be entertained.   To be clear, should you disagree with my determinations, I will not refund your money to soothe your disappointment.

Again, this exclusive opportunity is for those who are serious about gaining an unbiased valuation of a specific NEMT business.

Note, your investment is for a single EBV.  If your acquisition consists of evaluating multiple prospective businesses, each business will require a separate valuation.   

Executive Business Valuation

Pay with PayPal or a debit/credit card

Your investment includes  all required time for Joel to review your various information, all correspondence, and preparation of the actual Valuation.  Your completed EBV will be delivered via  email as a PDF.  The more organized, thorough, and quickly you are able to provide necessary information to include P/L statements, associated financials, and asset rosters, the more quickly your Valuation will be complete.

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