Don't even think about closing your practice. List it with Philip Driver and Company and let them do all the work.
I didn't know if my primary care practice would sell. Only 4 years open and with a moderate patient base. I wanted to move to a different location so I called Philip Driver and Company to provide me with the information I needed to sell my old practice and assist me in opening my new practice. Thanks for making my life easier and my carrier more successful. Philip Driver and Company, professionals you can depend on.
Philip Driver and Company take the guess work out of selling your medical practice. We provide you with a step by step work sheet with a list of materials that are needed in order to sell your business. Some of the considerations and requirements needed to close successfully are:
1)Getting your practice ready to sell 2)Pricing your practice We use BizScore Valuation Service 3)Finance options and sources 4)Advertising your sale while maintaining confidentiality 5)Meeting with prospective buyers 6)Receiving offers and conducting negotiations 7)Complying with the due diligence requirements 8)Closing the transaction
How To Sell A Medical Practice Most physicians, in the past, haven’t bothered to sell their practice; rather, they chose to retire or close their practice, turning their patient charts over to a colleague.------ Please don’t go this route!It is difficult for anyone to sell their own business, house or practice, for that matter. But the thousands of dollars you have earned through the years and your sweat equity is still in your practice.Your equipment, fixtures and computer system have value, but the real value is the number of patients that are accustomed to coming to your practice for health care services.It takes a long time for a practice to build up to 8 or 10 patients per day, on average.By the time you are seeing 12 to 14 patients per day, you are usually well into your second year.Regardless of the reason you are closing your practice, such as retirement, moving to another area, divorce or sickness, consider selling your main option. Don’t wait until the last minute!Start organizing your practice a year, or certainly several months, before you think you may sell.It takes months to just prepare your books for a smooth transaction.Discuss the sale of your practice with your CPA, and make sure your medical receivables are worked timely.Don’t let your practice run down; fresh paint is helpful in selling. So is cleaning or replacing soiled or worn carpet.This is the most important step in selling your practice:Don’t tell anyone.Don’t announce that you are selling to your staff, patients, your club, or best friend.Keep your decision between you and your CPA.If your staff or patients get wind of your sale, they will look somewhere else for future employment and health care. There is no magic formula in determining your practice value.The most accurate and cost-effective way to find the value of your practice is through a BizScore Valuation.BizScore usually works with CPAs, banks and business brokers.They will collect your financial data and calculate your practice worth.The reports are about 50 pages in length and cost $2,500, far less than most CPA valuations of $14,000 to $25,000. The BizScore Valuation is a very impressive report to potential buyers and banks, and grants you peace of mind. As most physicians will attest, it is very hard to start a new practice, and doctors encounter thousands of unforeseen expenses.If a physician new to an area wants to have a practice, often the easiest and least costly option is to buy one.It may also be the only way to enter the market.Additionally, buying a local practice at a reasonable price is often a cost-effective way to inherit a patient base, fresh ideas, and growth. Before you put your practice on the market through a qualified broker, increase your practice value.A simple way to increase this value is to get another provider who sees patients on your behalf.You can usually accomplish this through a locum tenens company.Physician Solutions is a very old and dependable source of part-time medical doctors.This arrangement allows you time to handle your business affairs and increase your patient numbers and revenue.Your practice is worth more when you have a mid-level or additional MD provider.
A physician who doesn’t have a plan for selling risks being forced to sell at “fire sale” prices, if it sells at all.If you don’t have a plan for success, you automatically have a plan for failure.Philip Driver and Company would like to represent you and your practice while creating an extensive marketing campaign, confidentially.
Article writen by: Philip Driver, ABI
We have some excellent articles written by Philip Driver that you may find valuable if you are considering selling your practice. You can request these informative articles FREE.
(1) Your Medical Practice May Be Worth More Than You Think (2) Myths When Marketing A Practice/Business For Sale
Are you considering selling your medical practice? Philip Driver has over 20 years experience in health care. He has owned numerous practices and has consulted to dozens of others. If you would like to sell your practice for the maximum fair price as quickly as possible, contact us today.
