Here are the answers to some frequently asked questions about selling your Medical practice:
The location of your medical practice often determines how quickly it will sell. In an urban environment, your practice may sell in as few as 6 to 12 weeks from the time the valuation is completed. If your practice is located in a rural community where the demand for a medical practice is possibly lower, it could take anywhere from 2 to 5 years to sell your practice.
In most cases it is possible for the buyer to secure 100 percent financing for the purchase of a practice. We have established excellent relationships with a number of large national lenders who specialize in medical practice acquisition financing, as well as SBA and local lenders that make these loans. In fact, purchasers often secure 100 percent financing plus working capital as well.
- Reassess your fees, and update your fee structure annually to add value to your practice.
- Conduct a cash flow analysis.
- Maintain a high level of production. You may be tempted to decrease productivity as you approach retirement, but raising or continuing your production levels helps to maintain the value of your practice.
- Keep patient numbers high. The total active patient count is one of the principle metrics used to calculate practice value.
- Keep well organized financial records. Ask your accountant to organize records so that you can easily determine your actual overhead and profits accurately.
- Maintain accurate patient records. A purchaser will likely review the condition of these records.
- Improve the appearance of your office. Clean and/or redecorate to ensure a good first impression.
- Keep your medical equipment serviced and in good working order. Poorly maintained equipment will result in a lower offer.
- Seek professional advice. Qualified consultants may identify opportunities to improve your practice before placing it on the market.
A private seller does not have access to the resources needed to effectively sell a practice. A broker can provide a potential buyer with a professional appraisal, cash flow assessment, and risk analysis information that documents the true value of your practice. Other benefits include:
- Brokers offer accurate valuations.
- Brokers can offer your attorney and accountant tax advice on how to structure your sale.
- As experts in medical practice transitions, brokers can recommend legal measures to protect you in a transaction.
- Brokers can interpret financial statements and articulate the actual value of your practice.
- Brokers provide maximum listing exposure in a wide range of media outlets.
- Brokers can save you money and free you to continue working and earning an income.
- Brokers lend legitimacy to a sale. Their expertise inspires confidence in both parties.
- Brokers keep the transition confidential. Confidentiality breaches can result in a loss of patients or issues with competing practices.