If you want to enter the NEMT business or grow your existing business, purchasing an established NEMT company might be a wise decision. With the industry expected to continue growing steadily in the next few years, now is the ideal time to invest.
NEMT Cloud Dispatch will take you step-by-step through how to buy an NEMT business. Including market trends, financing, and what you should be on the lookout for when assessing a potential NEMT buy.
Why the NEMT Industry is a Smart Investment
To buy a NEMT business is riding a robust growth wave. Inflated by an ageing populace, growing chronic health conditions, and escalating demand for affordable healthcare, the market is anticipated to grow to $15.58 billion by 2028 at a CAGR of 9%.
With millions of Americans needing routine medical visits but without access to personal transportation, the demand for dependable NEMT services is evident and on the rise. An investment in a strategically placed NEMT business provides you with an opportunity to take advantage of this growing demand. Explore More: How To Start and Grow Your NEMT Business?
Is Purchasing an NEMT Business for You?
Don't dive in without thinking through your goals:
Are you a healthcare or transportation professional who needs to grow rapidly? Do you prefer skipping the startup process and putting your money into a business that already has an operation up and running? Are you looking for long-term cash flow, a future exit opportunity, or to buy NEMT vehicles? If your answer is yes to either of these, purchasing an NEMT business can be a wise path.
How to buy an NEMT business?
All NEMT businesses aren't equal. Here's the NEMT startup guide: You May Also Read: How to Start a Non-Emergency Medical Transportation Business?
Financial Health
- Revenue and profit margins in the last 2–3 years
- Client base (healthcare providers, Medicaid contracts, private pay)
- Expenses: insurance, vehicle maintenance, payroll for staff
Operational Structure
- Number of vehicles in good condition
- Technology employed (scheduling software, GPS tracking, dispatch systems)
- Driver management and compliance
Reputation and Contracts
- Customer reviews and community reputation
- Contracts with nursing homes, hospitals, or state agencies are currently in place
- Any compliance or legal issues
Scalability
Seek a business with some growth potential, either through expanding into new service areas, adding software solutions, or increasing its fleet of vehicles. Mergers vs. Acquisitions: What's the Difference?
Mergers
A merger occurs when two businesses combine forces. This is good when both entities provide complementary services and desire to grow together. You split assets, liabilities, and decision-making.
Acquisitions
In an acquisition, a company purchases another, usually to soak up its assets, customers, and market share. This strategy provides you with complete control and more rapid access to a proven brand.
When AMGH merged with AMR to form Global Medical Response, they pooled resources to serve disadvantaged communities better and build emergency care infrastructure.
Think of a Strategic Partnership
If a complete acquisition is too costly or risky, setting up a partnership may be a good place to begin. It provides you with the opportunity to work together, split the load, and try before investing in a complete merger or buyout.
Example:
Uber Health partnered with American Logistics to expand its non-emergency medical transport business. Rather than merge, they collaborated to serve providers and patients better.
How to Finance Your NEMT Purchase
Purchasing a non-emergency medical transport business takes cash. The good news is that there are several ways to finance it. Read More: How Much Does it Cost to Start an NEMT Business?
Cash in Hand
It's best if you possess the liquidity. You skip interest and can sell faster.
SBA Loans
The U.S. Small Business Administration provides good terms and low interest. They're great for first-time purchasers or small business owners looking to expand.
Bank or Credit Union Loans
Traditional lending is possible but might require great credit and collateral.
Asset-Based Loans
Collateralize funding using vehicles, contracts, or receivables.
Blended Options
Use a combination of equity and debt to diversify risk and maintain control of your business.
When is the Right Time to Buy?
The "right" time to buy is based on your personal and financial preparedness as well as market conditions. Look out for:
- Strong demand in your area
- Low loan rates
- Companies with growth prospects but low competition
Final Thoughts
Whether buying or selling, the NEMT marketplace is full of opportunity. With appropriate due diligence, professional assistance, and clear thinking, you can get in or out of the business with confidence.
At NEMT Cloud Dispatch, we arm providers with the NEMT software solutions they require to manage, scale, and streamline operations. If you're taking over a new company or getting one ready for sale, our sophisticated features, such as auto-dispatching, real-time driver tracking, and rate management. If you are aware now how to buy an NEMT business Book a demo now, we can help you improve performance and add value.
