Do You Want to Sell Your Practice?

Tranquility Amidst Grandeur - 2018

Sierra Nevada, NV

How To Prepare For Success

The successful preparation of your practice for succession and sale requires careful planning. There are several stages of the process that evolve in a natural, practical manner.

It is best to create plans that correspond to each of these stages. Each of these plans will provide the blueprint that will guide you and your staff through each of these phases successfully.

Phases

There are three concerns that should be addressed in a thoughtful, structured matter in order to optimize the probability of a good outcome. These are: preparing your practice, optimize its value and prepare for the recruitment and introduction of a new associate.

The underlying principle of preparing your practice as it functions presently, is that it is not the same thing as preparing it for a new associate. Your practice may or may not be functioning optimally for you presently. Either way, an analysis should be undertaken of its performance first and then implement necessary improvements. Some examples are: the financial condition of your practice and organization of related data, staff performance, the physical condition of your office, etc.

The second phase is to optimize the value of your practice. You begin by evaluating what is commonly referred to as “net revenue” and identifying certain types of expenses that will increase your EBITDA (Income Before Interest, Taxes, Depreciation and Amortization). In addition, there may be a variety of other extraneous expenses that can be identified to increase EBITDA. The result will likely increase the value of your practice.

A related consideration is to evaluate your sources of revenue and explore the possibility of diversifying and increasing it. This should be considered in the context of the anticipation of having a new associate.

The third phase involves preparing your practice for your new associate. This includes, but is not limited, to ensuring adequate office space, staff, scheduling, hospital privileges, various types of credentialing, introduction to the community, etc.

Corresponding Plan

The following plans comprise a methodology to organize and execute the process. They correspond to each of the phases described:

• Phase 1 - Practice Preparation Plan
• Phase 2 - Practice Value Optimization Plan
• Phase 3 - New Plastic Surgeon Preparation Plan

Plan to Prosper

It is important to note that this is a process that in labor-intensive and lengthy. For this reason, it is prudent to begin early, often much earlier than you may think. How long? In general, about five years in advance of your anticipated end date.

Keep in mind that this process and related tasks will take place simultaneously with the ongoing care of your patients. It is wise to assess if there are needed staff adjustments that should be made to adequately support the process.

Finally, be prepared to be flexible and adjust your plans as needed.

PS: Would you like to learn more about how to prepare yourself and your practice for the End of Career Transition? You may be in solo practice and wish to carry out a succession or outright sale; perhaps you are in group practice or are otherwise employed. I provide consulting/coaching services that are tailored to your specific needs. Click here to request a complimentary introductory conversation.

Grand Paths to Success - 2008

Grand Teton National Park, WY