There are many reasons why a physician would sell their medical practice. They may be retiring, changing careers, joining a hospital staff, or relocating. There are several different types of medical practice sales, and each variant can affect the tactics you take in planning. If you have a solo practice and have been training someone to take it on after you leave, then you will have to develop a succession plan. If you are interested in having the practice acquired by a health system or large practice group, then you must investigate what offers you should pursue.
Whatever the reason and whatever the type, there are things you can do ahead of time to prepare for a sale that will be a good fit for your goals.
Have your advisory team prepared. Over the years you have developed a team of experts to help your business move forward. This could consist of your accountant, lawyer, and perhaps your human resources advisor. Meet with these team members to discuss the sale and see if they have enough expertise in the process to help you get all the documents you need in order.
Determining value. According to Health Leaders, your first step in the selling process is to determine the current value of your practice. This will take some significant work on the part of your accountant. This important sum will be based largely on revenue with adjustments according to the negotiated percentage as well as other business assets.
Beware the bad buyer. For many physicians the selling of a practice is a highly personal process, and they want to make sure that the business they built is turned over to a good employer so that the staff that has been loyal to them is well taken care of. Make sure that the buyer has a strong fiscal outlook and is not only able to complete the initial sale without any trouble but can also maintain the practice in the future.
Get the paperwork in order. Anyone who has ever sold a house knows that the details are everything. Not having everything up to code or lacking an up-to-date survey can add weeks onto the selling process exposing the deal to a danger of falling through. The same is true when you sell your medical practice. Putting the practice on the market without getting all the necessary documents in order, can slow things down, and potentially negate the enthusiasm of the interested party.