The Transition From Your Practice

Wonder Lake & Alaska Range – 2011

Denali National Park, AK

Essentials for Success

When you are preparing your medical practice for a sale, it is worthwhile to optimize its current performance, profitability and make it ready for a future associate or a private equity buyer.

As you begin this process, it is common for physicians to focus initially on the succession or actual sale. This is the case whether you are undergoing a traditional succession or sale to a financial institution such as a family office.

This is usually because you believe that your practice is functioning just fine. It may need some fine-tuning, but in general, you are satisfied with its performance. However, beyond this, it is important to think about the future, broaden your outlook and consider further your own interests as well as the buyer’s perspective.

The Buyer’s Perspective

Give thought to the fact that a buyer will have a different point of view and put yourself in his place. He will probably be be coming into a new community, perhaps with his family. He will making a significant financial investment and other commitments. For these and other reasons, you can expect that he and his advisors will undertake a diligent evaluation of you, your practice and community. 

What to Do?

It is important to be able to demonstrate that you have undertaken preparations to accommodate your new associate or buyer. You can be assured that it will be appreciated and will reflect upon you favorably. As owner, you can address what you think is needed, as well as what you can reasonably anticipate from a buyer’s perspective.

While it’s a good thing to “begin with the end in mind,” it is critical to know what needs to be done in a certain manner and order to achieve your goals.

The “what” can be summarized in one word…preparation.

Practice Preparation

This involves three specific goals:

1. To enhance the current function of your practice. 
2. To increase the value of your practice by optimizing its profitability.
3. To prepare your practice to accommodate, support and promote a new plastic surgeon whether in a private succession or sale to a financial institution.

To accomplish these goals, develop corresponding plans that are executed in sequence:

1. Optimize Practice Performance
2. Maximize Practice Profitability (therefore, its value).
3. Prepare for New Plastic Surgeon 

How Does this Approach Benefit You? 

The creation of these plans is extremely valuable. Their timely, ordered execution will provide you with a methodology to achieve your goals and experience the benefits of those successes.

Without them, the chances of achieving your goals will be diminished considerably. As it has been said, “hope is not a plan, it simply does not work.”

The design and execution of your customized plans will help you create a clear path marked by tranquility, triumph and success of your design.

Updated: October 4, 2024

PS: Would you like to learn more about how to transition from your practice? I would like to assist you. I provide practice transaction services that are tailored to your 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     

Tundra in Autumn – 2011

Alaska Range, Eielson

Denali National Park, AK