Sell a Practice
Selling a Practice
Yes, we’ve been around a long time.
Yes, we do in fact have an incredible amount of experience, insights and knowledge in how to successfully transition a healthcare cacility to a new buyer.
A potential buyer can vary.
From individual first time buyers to corporate and/or equity buyers, we work with them all.
Our history has lent itself to much larger facility sales (like a hospital), chains of medical or dental clinics, and the smaller private individual practice sale.
Our database is deep.
Many times we already have an immediate buyer and a new listing will never even make it to our website!
Retiring, moving, changing careers, wishing to take advantage of ‘the market’ or whatever the reason may be – we’re here and ready to help!
For ProMed Financial’s team of specialists, a practice sale is often our most challenging yet our most gratifying and rewarding endeavor.
We work with all kinds of medical practices and specialties, including but not limited to:
- Internal medicine
- Urgent care
- Family medicine
- General medicine
- Pain management
Let’s get you a buyer – let’s talk.
Who Is Your Best Buyer?
Let’s Consider the Options
Sell to a Family Member
The dream of many doctors is to pass on their established practice to a family member ensuring that their legacy lives on. Though if you’re looking for proceeds to retire, this may not be the most lucrative way out.
Sell Your Practice to an Associate
This is an attractive option to consider, as an associate will be familiar with the operation of the practice and often some of your patients. The staff has already had the opportunity of working with the Associate, so the likelihood that they would be unhappy is lessened and so is the possibility of a high attrition with your patient base. The downside is that the Associate can feel that they have contributed to the gross income and goodwill and therefore want credit for this.
Sell to a Solo Buyer
This is the most common type of sale. There are many buyers seeking the right opportunity. ProMed Financial, in most instances, has been successful in acquiring loans up to 100% of the selling price. This means an all-cash sale to you.
Sell to a Group or Equity Buyer
This seems to be the trend right now. Often it will require a longer transition, sometimes up to four years, but it does give you the ability to reap the rewards of an EBITA value which can be greater than the typical fair market value. There are many pros and cons, which is reason to confer with an experienced team of practice transition specialists.
Before you even consider this one, we believe that there is always value in your practice. Let’s talk.
RIGHT TIME TO SELL?
Every day, doctors reach a point where they decide to sell their practice. Sometimes planned and sometimes not, there are various reasons for this to occur, such as:
- Health issues
The right time to sell your business is not always obvious, so you always want to be ready. A well-planned exit strategy will come in handy when the time comes.
The selling process is straightforward and is structured as follows:
1. You make the decision to sell.
2. You decide to engage the services of ProMed Financial for professional assistance in marketing, determining the value, procuring the right buyer who appreciates your practice opportunity, and determining after an extensive analysis the fair market value of your practice.
3. Buyers who are interested will be required to execute a confidentiality agreement in order to have pertinent information released on your practice.
4. Upon their review and continued interest, we will make arrangements for an initial introduction through a conference call, personal meeting, and/or Zoom.
5. If the buyer wants to move forward, we will initiate a letter of intent followed with a due diligence period, arrange for financing, and continue with an asset purchase agreement. Guidance will be provided along the way.
6. Arrangements are made for closing the sale, transferring the practice, and providing any necessary training and introductions to referring sources.
“HOW LONG DOES IT TAKE TO SELL MY PRACTICE?”
There is no exact answer to this question, as we have sold practices in one day, one week/month, etc. If we have not received an offer within three months, then we will revisit and examine possible reasons such as: overpriced, unfavorable location, little transition, key personnel leaving. Whatever the reason and whatever your motivation may be could require some adjustment. Price is a major determining factor.
What is the Fair Market Value?
This is the beginning of our relationship.
Through our expertise and exposure to hundreds of practice sales, we are easily able to identify the inherent value of your practice by applying our proprietary method of analysis.
This complimentary service will provide you with a range of value to consider.
Knowing what your business is really worth, and fully understanding its value, improves the chances of a successful transfer of ownership and allows you to plan an effective strategy.
This way you will be offered the best sales price when the time is right.
There are a variety of reasons why you may need a written report. These may include: partnership relationships that are dissolving, a complex situation involving personal issues such as divorce, or just needing to have a statement that outlines the value for future sales.
We offer a courtesy valuation and this may be sufficient initially. Usually the buyer’s accountant / consultant will spend time during the due diligence period to ascertain or agree with the fair market value we have quoted.
A professional 28-page extensive appraisal is not always needed and quite frankly often will contain a lot of “fluff” that is unnecessary but costly. We can always provide a one-page summary of value for a very minimal cost