Potential Obstacles to Selling Your Practice

Three Brothers – 2008

Yosemite National Park, CA

Opportunities for Optimization

The preparation of your practice for a sale, whether by succession or to a private equity firm, involves a variety of major items to think about. In the early stages of considering such a move, your degree of readiness may vary. Besides the desirability of having your practice functioning optimally in the present, it is also necessary to prepare it for a buyer.

How to Prepare and in What Order

Generally, there are three major preparations needed to make your practice ready to offer it for succession or a sale:

• Optimize its performance. 
• Maximize profitability and thereby its value.
• Prepare it to introduce a new physician (via succession or private equity purchase)

Your attention to these goals is a sensible, sequential and practical approach that will improve the present condition and profitability of your practice. By doing so, you will increase the probability of achieving your goals.

Generally, it is critical to consider not only your needs but also the perspective of a prospective buyer. One key area to prepare for that is sometimes underestimated, is to prepare before beginning your search, the data that will usually be requested by a prospect. This will facilitate their process of thorough due diligence.

As you undertake an objective evaluation of your practice in the context of your goals, you may encounter obstacles that you can identify and eliminate.

Examples of Possible Impediments

• Are you prepared personally?
• Do you have a well-defined goal(s)
• Do you have a backup plan?
• Is your practice functioning optimally?
• Is the practice positioned for further growth?
• Is your practice prepared for a prospective buyer ?
• What type of buyer is ideal or acceptable? 
• Are there unresolved or potential regulatory matters?
• Are there unresolved or potential legal concerns?
• Is your practice compliant with regard to: various practitioners’ scope of practice, your supervision of clinical employees, adherence to HIPAA, Corporate Compliance, anti-fraud monitoring, cyber security monitoring?

These are a few items, among many, for you to consider.

Turn Time into Your Tool

I am often asked: When does my transition begin? It varies because it is a very personal matter. However, it usually begins when you notice that you are contemplating it more often than usual. For many physicians, this starts about five years in advance of their goal and related date.

A proactive approach that turns time into an asset will increase your options and provide more flexibility to adjust your goals and plans as needed. Without timely, proper planning, you will likely limit your options and find yourself reacting to circumstances.

The preparation and execution of your plans will provide a clear path marked by tranquility, triumph and success true to your vision.

Plan. Prepare. Prosper. _TM

PS: Would you like to learn more about how to transition from your practice? I would like to help you. I provide practice transaction services that are tailored to your specific needs. Click here to request an introductory conversation.

Sunset Begets Sunrise – 2010

Gulf of Mexico, FL