This question is impossible for anyone to answer except for you.
Selling your practice can allow you to:
- Lock in your profits from all those hard years of seeing patients
- Cut your losses if things are not going that well in your practice
- Free up your time to move onto new ventures or maybe retire from clinical work
- Get a large cash sum
Keeping your practice can allow you to:
- Continue the practice with regular profits (or losses?)
- Keep you in the role you enjoy, whether that be treating patients & or managing staff
- Keep building the practice so that when you sell it later you will be able to sell it for more
Selling your practice or staying in your practice each have their own benefits. Common reasons clinic owners come to us to sell are:
- Relocation interstate or overseas
- They have had enough of running & managing the clinic & just want to treat patients
- They want to move onto a new career
- Partnership disagreements
- Marital divorce
The time it takes to sell a practice once it’s listed on the market varies greatly depending on a number of factors such as location, profitability, staff in place & so on. However, on average once we list a practice our average times to sell a practice are 3-6 months. While those in capital cities can sell within a few days rural practices can take up to 12 months to sell. When selling a practice the vendor needs to be patient, if you give it enough time the right buyer is more than likely going to pop up.
Apart from our standard fees the additional costs you can incur include solicitors fees to draw up the contract of sale, your accountant fees to assist you with preparing your financial statements & possibly liaising with the buyer or their accountant.
The first step is to get us to prepare a professional valuation of your clinic’s goodwill & equipment. We base the goodwill valuation on many factors, 3 ‘key’ factors are; comparable sales, a multiple of your EBITDA & a % of your gross takings of your practice. While each piece of your equipment in your practice is given a current market value.
Some of the items that are required are:
- Last 3 years financial statements
- Clinic equipment list
- Your lease
- Last 12 months of patient statistics & last 3 months of revenue reports
- Staff contracts
- Clinic photos
- Clinic floor plan
A clinic sale involves more than just the seller & buyer. Accountants, lawyers, landlords, managing agents, etc. all potentially have a say whether a clinic sale goes ahead or not. It is the brokers job to navigate the various steps and ensure the final result is in the best interest of the practice owner. Here are a few more reasons to consider using Healthcare Practice Sales to sell your clinic for you…
- When emotions run high, the presence of a cool head is invaluable. A lack of emotional investment means they won’t take offence to negative news, while our extensive knowledge of practice sales means we are able to speak your & the buyers language.
- Finding buyers for your practice is ‘key’. We accelerate the search by using our qualified buyers database that has been built up over the last 10 years. We also provide advice (& place these listings for you) as to the best mode of advertising for clinic for sale outside our buyers data base such as professional journal & website listings, Facebook groups, LinkedIn & so on. We also will approach potential buyers through post, phone, SMS & email.
- As seller of your clinic, you obviously want prospective buyers to know you are putting the clinic on the market, but in most cases you do not want anyone else to know. The advertisement of a clinic for sale has the potential to unsettle staff, contractors & patients, which could, in turn, do damage to what is being sold. We carry out instructions from the seller of the clinic to ensure the level of privacy they desire is maintained. This always includes setting up a non-disclosure agreement that requires confidentiality from both parties.
- What will your clinic goodwill & equipment sell for? This valuation will first be established so you know what sale price you are likely to achieve for your clinic. This valuation is based on our many years in the field of selling practices using multiple practice comparable sales.
- Providing the necessary screening to assess those that are interested in your clinic for sale is important. The screening process means you are not providing sensitive material to buyers who do not fit your criteria. This is about not only finding someone with the financial means to take over the clinic, but also a buyer that is aligned with the culture of the clinic being sold.
- Selling a healthcare practice is a process that takes time, during which the day-to-day operations of the clinic must continue. Any dip in revenue could make the clinic less attractive to prospective buyers, which is why it makes sense for a broker to focus on marketing the clinic, leaving the seller to ensure it is an attractive prospect on the market. The less impact an impending sale has on a clinic and its staff, the better.
At Healthcare Practice Sales we know what it takes to sell a practice. Since being founded more than 10 years ago, we has completed hundreds of clinic valuations & sales. Our team brings together a valuation of your goodwill & equipment, negotiation, industry knowledge and sales skills. We offer a dedicated team of marketers with experience across multiple media platforms, and a large database of qualified practice purchasers. Our philosophy is to sell your practice for the maximum price in the shortest realistic time frame with the highest level of confidentiality. Contact us at firstname.lastname@example.org or 1300 652 361
Yes, you will be required to engage a solicitor as the seller to draw up your contract of sale. You can use our recommended legal firm or use your own solicitor of choice.
Yes, it is common for clinic owners to come to us just to get a valuation if they are thinking of selling their clinic in the future or if they just want to get an idea of what it is worth. Once valued you can come back to us at a later stage for us to sell your clinic. Depending on the gap of time between these 2 steps a re-evaluation may need to be done.