Thinking of Selling Your Practice?
LET US HELP YOU
Selling your medical practice is a major decision. Chances are that you may not have sold a business before and do not know what is involved in selling your business. It is natural to have questions such as:
- How much is my practice worth?
- How long it will take to sell?
- Is this the right time to sell?
- How can I do it discreetly so I do not lose patients or employees?
- How do I prepare my business to sell quickly and make it more desirable?
We have answers to these questions. As specialists in selling medical practices and businesses, let us help you and make the process easier for you. We have sold a couple of dozens of medical businesses in the past 3-4 years and can guide you through the process.
WHAT MAKES A PRACTICE MORE SALABLE
If you are not quite ready to sell your practice but are looking to sell it down the road, you may want to know how to make your practice (or any business for that matter), more valuable and salable. You could focus on improving some of the following (as per the Value Builder System)
- Revenue/Profits is one of the key matrices that typical buyer looks at. Very few want turnaround businesses, although there are exceptions.
- Growth Potential – Can the buyer, perhaps with new products or services or with better marketing, grow the business?
- Embracing the “Swiss Structure” – Be independent and not overly dependent on a key employee, a key vendor, or a key referring physician. Develop options.
- Cash Flow Strength – Is your business consistently cash flow positive. Is your billing system and patient collections efficient?
- Recurring Revenue – Every buyer loves recurring revenue – revenue that keeps coming without significant additional costs of acquiring new clients or retaining existing clients. In medical practices, this could be via offering concierge services to some patients or offering services to some institutions or companies
- Be Unique and Different – Can you offer something, e.g. some service or product that is proprietary or unique that no one or very few other practices offer? This would make it attractive to buyers because it creates a barrier for others to copy you.
- Buyer Satisfaction – Ultimately patients or referring physicians make or break your business and so having a high patient satisfaction, makes buyers more comfortable. Younger patients are often drawn to the practice via online reviews and so pay attention to reviews.
- Strong Management Team – Is your practice too dependent on you? Will your patients leave after it is sold? Now-a-days, we often see investor / private equity buyers and having a strong medical and management team in place would mean that the patients will not desert your practice once you retire.
GET YOUR VALUE BUILDER SCORE NOW IN 15 MINUTES
How does your business fare on these fronts? If you are curious, there is a simple 15-minutes test that will give you a “Value Builder” score – showing you where you are strong and which areas you need to improve upon.