Deciding to sell your practice is a very important decision. Here are 10 key tips to consider prior to, during and after your sale.
TIP #1 KNOW YOUR EXIT STRATEGY
Selling a practice requires careful assessment and planning. Have an expert review your current financial picture and discuss your options moving forward. It is important to have your exit strategy mapped out ahead of time.
TIP #2 IMPROVE & ENHANCE
Today's buyers prefer modern, well-maintained practices. Does it make sense for you to upgrade the outdatd chairs and equipment? A new look with updated flooring, paint and modern finishes will maximize the overall appeal of your practice.
TIP #3 STREAMLINE YOUR PRACTICE
Efficient and well-run practices are more attractice to buyers. Check your current staffing, pay rates and billing rates to see if you are in line with industry benchmarks. Practices with a longer track record of stable and/or increasing collections tend to sell for higher multiples.
TIP #4 WORK WITH AN EXPERT
Do not try to go at it alone. A trusted practice broker, like 1st Med Transitions, can help you value your practice and provide great insight as to what the market might bare for you practice. It also help to engage accountants and lawyers familiar with practice transisitions and transactions contracts.
TIP #5 EXPLORE ALL OF YOUR OPTIONS
When selling, there will be multiple buying options. With both Individual and Corporate buyer's active in the marketplace, it is important to understand the different advantages each offer a seller.
TIP #6 COMMUNICATE WITH THE STAFF
When selling a practice, you want to minimize the staff disruption and uncertainty. Once a buuyer is selected, talk with key members of your staff about your plans and let them know you also have their best interests in mind.
TIP #7 WORK WITH THE BUYER
Having a smooth transition is of the utmost importance. Working closely with the buyer to set a post close transition period will help ensure practice continuity for both patients and staff..
TIP #8 EDUCATE THE BUYER
Your buyer will be making a substantial financial commitment to purchase your practice. It is important that they understand the key clinical and procedural aspects for your pracitce. A thorough and transparent due diligence period is critical to ensure a healty transition for both parties..
TIP #9 FINISH STRONG
When selling a practice, maintaining a strong, healthy office up and through the sale is critical. DO NOT check out and let your practice collections slip. Finish strong so there are not questions or concerns that pop up last minute that can derail the sale..
TIP #10 POST CLOSING TRANSITION
The sale is closed, but you are not finished yet. Make sure you are involved in the transition period as planned and be there to help the new owner when needed. Their success is vital to the practice and limiting and legal concerns post sale.
Michael S. Furlong - Senior Transition Advisor
Mike has been assisting Doctors with their practice transition needs for over 10 Years has personally been involved in $150+ Million in closed practice transactions.
Mike can be reached at
(800) 815-0590 or firstname.lastname@example.org.