The Dos and Don’ts of Selling a Private Practice
Whether you’ve started a private medical practice or a law practice or some other endeavor, a lot of blood, sweat, and tears went into it. All things come to an end, however, and there may come a time you decide to sell it, whether you wish to retire, start a new business venture, or simply take more time for other pursuits. Whatever the reason, it’s not a task to approach lightly or without caution. You deserve to get a fair price. Learn the dos and don’ts of selling a private practice and ensure a smooth transition.
DO Start Planning Early
Whatever the reasons for selling a private practice, it’s best to start the process early. Transitioning ownership doesn’t happen overnight. Begin by assessing your current financial status. Review your client base and the overall health of your practice too. Early preparation identifies areas for improvement and boosts your practice’s value. Furthermore, early planning grants more time to find a buyer who aligns with your practice’s culture.
DON’T Overlook Your Financials
Prospective buyers will ask to see your financial records. The more transparent and organized you are, the easier it is to attract serious offers. Keep your books in order and highlight key profitability metrics. Don’t inflate numbers or overestimate future profits. Potential buyers will walk if anything seems suspect.
DO Seek Professional Guidance
You could sell your practice on your own, but that’s highly inadvisable. Hire professional advisors who know the ins and outs of private practice sales. A skilled broker or financial advisor streamlines the process. They’ll lead you through every step, from pricing to negotiation to the piles of paperwork involved. Expert assistance ensures you get a fair price.
DON’T Forget About Your Team and Clients
Keep your team and clientele in the loop about the sale and what will happen before, during, and after it. Be transparent. Let them know how the handover will be conducted, and what they must do to prepare. A well-handled transaction boosts the buyer’s confidence, raises your value, and is simply the professional thing to do. Be available to answer questions.
DO Prioritize Succession Planning
Who’s in charge? A seamless transition benefits everyone. Train staff and ensure they’re aware of core support functions to handle in the interim. Offer to stay on for a short time after the sale to provide support and continuity. If successors are required for any roles, find the right people and put them in place, ready to help the new owners.
DON’T Undervalue Your Practice
Humility is an admirable trait, but don’t sell yourself short when selling a private practice. Many private practice owners underestimate their value. It’s not just about physical things like property and office space. Factor in intangible assets like goodwill and client loyalty.
Those are some of the dos and don’ts of selling a private practice. While it can be a difficult and emotionally charged process, it’s also a great opportunity to reap the benefits of your hard work. Take your time, seek expert help, and ensure a greater reward in the end.
