Preparing for Obstacles to Selling Your Practice

Snow-clad Chokecherry – 2013

Grand Teton National Park, WY

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’s 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.

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’ll increase the probability of achieving your goals.

Generally, it’s critical to consider not only your needs but also the perspective of a prospective buyer. One key area 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’m often asked: When does my transition begin? It varies because it’s 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 planning, you will likely experience hesitation, delayed decisions and will be less able to respond to opportunities or additional unexpected  challenges.

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 successfully from your career? I provide services to physicians, non-medical professionals, corporate executives, businessmen and entrepreneurs that are tailored to their specific needs. Click here to request an introductory conversation.

If you would like to learn about another way that I can guide you, check out this brief video that describes my unique online course: 

 The Practice Transition Course for Physicians. _TM   

Gulf Coast Splendor – 2010

Florida