On the Disposition of Your Practice

Dahlia - 2020

Nevada

Choice vs. Necessity

You have been in solo practice for many years and the time is approaching when you will stop practicing. You remember, reflect and feel a sense of pride and achievement for what you have accomplished in the service of your patients. 

Those sentiments are probably accompanied by your awareness that you need to decide what to do about your practice. You wonder: Do I sell or close it? That core question is the basis for many others that you must address.

The question is straightforward, but the answer is not. For some of you, it’s a daunting obstacle. For others, it’s just another challenge. Why?

Much of the answer lies in the origin and nature of major transitions and how we manage them.

Developmental Transition 

Typically, there’s a change that occurs that triggers the beginning of your end of career transition. 

The first type occurs when you recognize that the time is close at hand and you’re motivated to begin to prepare. This change originates within you and is the basis of a developmental transition that begins when you begin to envision your end of career. Often, this is about five years in advance of the anticipated date. This time frame facilitates options such as introducing a new associate as part of a succession plan, an outright private sale or one to a financial institution. On the other hand, if your projected end date is considerably shorter, these options may not be available and you may have to resort to selling your assets and closing your practice.

From a personal perspective, this type of transition provides you with the ability to plan and prepare in an orderly, proactive manner amidst a sea of relative tranquility. It prepares you for the expected and provides you the flexibility to adapt to the unexpected. An example is one of various disabilities that can occur at any time, especially during the latter years of your career.

Reactive Transition 

In contrast, the second type is vastly different. This is brought about by a sudden  change, often undesired and unexpected, that triggers a reactive transition. Such an event will usually require that you rise to the occasion so quickly and effectively that you will probably feel that you’re in battle mode, because in a real sense, you are. 

If it seems to you that I am very familiar with a reactive transition, it’s because that’s precisely what life presented me early in my career. I have related my story in previous articles.

This type of transition is characterized by a much shorter timeline to respond, a compounding of the challenge and a major limitation of your options. While you can certainly explore options such as a succession or an outright sale, you may conclude that your circumstances are such that the best option is to sell your assets and close your practice. Note that this option requires considerable planning and fulfilling a myriad of professional and business responsibilities. However, compared to the other alternatives, it’s relatively simpler and can be completed in a much shorter period of time. There are other important benefits as well.

The Next Great Phase of Your Life

Your options for the disposition of your solo practice are most often to sell it or close it. The right decision is the one that best serves your needs and aspirations…which you can determine and act upon. As you do so, I recommend that you take something else into consideration. 

In the course of preparing for your end of career, a major concern will be the timing and manner of disposition of your practice. It’s very important that you also take into account the length of time you will still be practicing after a succession or outright sale. Even when things go smoothly, this time period is often measured in years. As a result, this can significantly affect your planning and transitioning to the next great phase of your life.

In contrast, there are some valuable attributes of closing your practice that are beneficial to you.  A major one is that it’s a much more manageable process that you control. It requires considerably less time to execute as it’s relatively less complicated. Once you’ve closed your practice, there will usually be some residual tasks that you will need to take care of that are quite manageable.

A major benefit to you is that this approach facilitates the means to plan the personal elements of your transition. You will have more time, energy and relative clarity about what lies ahead.

My best wishes to you and your family!

Plan. Prepare. Prosper. _TM  

 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.

The Teton Range - Grand, Middle and Lower Tetons - 2007

Grand Teton National Park, WY