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Each of the big-picture subjects covered herein have many smaller steps to them, and we have written articles related to many aspects of the process, and even created a groovy infographic on the process. Check out some of the following free resources here on our website. You can also download some or all of the PDFs referenced in the articles by clicking here. And if you'd like to read all of the articles in one big post, you can do that here.
Preparing To Sell
You need to get organized before you can sell your medical practice. Learn what you need to do through our pre-sale checklist, and have the right questions answered before you sell.
Whether you are just considering selling your practice and are curious about what you might need to do, or you are ready to go for it and need to know where to start, you’re in the right place.
The more time you have to prepare your practice for sale, the more attractive it will appear to a buyer, and the more options you will have for correct marketing to find the perfect buyer.
What you are doing with an executive summary is keeping your potential buyer's attention by leading them through a series of facts that make their decision to buy your practice seem like a very good decision indeed.
Whether you plan to sell a medical practice or buy one, the fact is that you want to keep your practice cooking right up to and well after the practice changes hands. Many of our clients have requested tips on how to do it.
Practice Valuation
The true value of a practice isn't a simple formula; rather, it's what a buyer is willing to pay. Learn about the different standards of valuing a practice and how to set the right price.
This calculator was developed to help you get an idea of where an official valuation might land if you were to get one. However, a good valuator will dive deeper than the information found here, so do not use this calculator as an official valuation for your practice.
In the process of researching medical practice valuation, you are likely to find that there are a number of “experts” out there who will tell you that they have a formula they use related to your income and expenses, and they may try to make the process opaque.
Finding A Buyer
Simply listing your practice for sale on a website doesn't get you a buyer. Learn the dos and don'ts of and some unique methods to find that needle in the haystack, the perfect person to take over.
Why is it that so many people have a hard time finding a good buyer for their medical practice and consummating the sale?
While a lot of people choose to just wing it on their first calls, we prefer to hew close to that old saying that luck happens when preparation meets opportunity.
If you have ever bought something big, like a house or a car, you know how important it is that you check out every possible thing that could go wrong, to be sure you aren’t missing something that could come back to bite you later. With the complexity of the purchase and sale of a medical practice, the same is true.
Creating A Sales Contract
Your purchase contract needs to reflect the uniqueness of your practice. Asset or Entity sale? How much will be paid up-front? What about employees? Learn some of the key questions to ask in order to create a contract that's right for you.
Creating a sales contract is a complex process that requires the answers to many important questions. So rather than just showing you what a contract can and should look like (which is basically impossible given that each deal is unique), we’ll instead go over many of the most important considerations that need to be dealt with in order to put together a solid contract for the sale of a medical practice.
If you’re considering buying or selling a medical practice and want to know which type of sale is most appropriate for you, it’s important that you (1) understand what assets are; (2) how liability pertains to each kind of sale; and (3) get to know the tax consequences of an asset vs. entity sale.
A major consideration when choosing how you will organize your sale is to know something about the tax consequences of each kind of sale.
In order to balance the risks of installment payments, there are many things you can consider doing before the sale and as part of your sales contract. What follows are some of our most important recommendations.
Given that goodwill is intangible (not a real thing you can objectively see or touch), it is often the part of the valuation equation that is most difficult to calculate. That said, with the sale of a medical practice, in the final analysis, it often accounts for the largest amount of the value of the business.
The terms of a non-compete can be a point of contention, a point of negotiation. You can negotiate the length of time, the distance, and/or the actual specialty or kinds of patients seen.
The degree to which the buyer of a medical practice takes on the liabilities of a practice depends to a large extent upon what type of sale you are doing.
Until you have all of the money for the sale of your practice in-hand, there always exists the risk that the buyer could walk away before the payment period is over.
Transitioning After the Sale
Transitioning a buyer into a practice is a delicate process for you, your patients, and employees. Click here for some proven strategies that work to reduce attrition and ensure a smooth hand-off.
Keeping the business humming through the transition from one owner to another is in the best interests of both parties.
The purpose of this post is to assist you in answering those very questions by explaining what we advise in respect to staying organized and effective through the transition.
Whether you plan to sell a medical practice or buy one, the fact is that you want to keep your practice cooking right up to and well after the practice changes hands. Many of our clients have requested tips on how to do it.
If employees are a key part of the success of the practice, their future will also play an important part of the sale of the practice.
Deciding whether or not a seller stays with the business as an employee, independent contractor, at-will employee, and/or working for free is a big decision. Much rides on the way these agreements are put into a sales contract, both from a liability perspective and the view of the IRS.
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Many of the courses above include handouts, checklists, and more detailed information.
Rather than downloading them all separately as you read, you can download them all here, now.
