Should you buy a clinic before you sell your own clinic? It is a question that has been circling around the allied healthcare practice sales field. Essentially there is no correct answer, it all depends on your personal preference and circumstances. Regardless of whether you are a practice owner (you may be a Physiotherapy, Podiatry, Chiropractic, GP, Osteopathy, Speech Pathology, Occupational Therapy, Psychology, or other type of clinic owner) looking to upgrade, downgrade or simply to relocate, you will likely be looking to buy a clinic at the same time as you sell one. However, what should come first?
Below is a look at both sides of this debate, with reasons why you should consider one argument over the other with regards to buying a clinic or selling your own & which comes first.
Buy the Clinic First
One of the best parts of buying a clinic first is that you can take your time, as there is no looming settlement date fast approaching on your allied health practice. Having time up your sleeve is like having an extra weapon in your arsenal when it comes to viewing allied health clinics for sale. You can place offers without feeling rushed, as well as holding the power in negotiations, especially if the vendor of the clinic is looking to sell their practice quickly.
Stumbling across the perfect clinic that you know you must have can also provide the motivation to buy first. For some, this is the most suitable option to take, given that if you are too slow you may miss out on the opportunity! Furthermore, buying first means you are guaranteed a place to practice and once you sell your clinic, and you will only have to move once.
On the other side of the coin, you could find yourself in an anxiety-inducing period of financial hardship if your allied health clinic is not selling as quickly as expected.
This could result in you being like the vendor looking for an urgent sale that you benefited from earlier. This means your practice could sell for less than its value or with undesirable terms.
Sell the Clinic First
Provided there are no other external factors, selling first means you will have acres of time to decide on a price, be flexible on your sale date, negotiate with buyers and be pickier with which offers you would like to accept. This can help ensure you get the best price for your allied health practice, with conditions that suit you. It can also help you in your hunt for your next practice, as you will know your exact financial standing.
Despite this, if you are unable to find the right property soon after the sale of your allied health clinic then you will have to face the prospects of searching for a new practice as soon as possible or possibly making a rushed life choice.
While this may not bothersome, it can be trying for some sellers. This can result in you making a rash decision, potentially buying a practice that is not quite right or for a price that could have been negotiated.