Whether you’re ready to retire or looking to pursue new ventures, selling an allied healthcare practice (you may be planning to sell your Physiotherapy, Chiropractic, Podiatry, Speech Pathology, Psychology, Occupational Therapy for example) or medical practice is a major decision that requires careful planning and preparation to ensure that you have the right exit strategy. Generally, the more profitable your clinic is, the easier it will be to sell, or merge. Therefore, growing your allied healthcare or medical practice into a profitable and scalable practice/business that is not solely dependent on your labour, is one of the things that will make it more attractive to potential buyers in the healthcare space. However, there are other things to consider when selling a allied healthcare or medical practice that could maximize the value of your practice (or you may have a group of practices) in the market and make your exit strategy as smooth as possible.
- Planning and Preparation
Planning 12-18 months ahead will allow you to establish solid financials and avoid overpricing, which is a common reason for why many allied healthcare & or medical practices don’t sell. Getting a professional practice appraisal is an excellent way to ensure that the price of your clinic is reflective of your asset value and goodwill and will better help you understand what your allied healthcare or medical practice is worth objectively. Seeking a professional appraisal is also appealing to potential buyers as it indicates that your sales price has been objectively valued by an unbiased independent expert and is based on the accepted industry standard.
Taking the time to arrange the handover process to ensure that the practice runs smoothly is another important factor that requires planning and preparation. This may include tasks such as discussing standards of patient care with the buyer, introducing the buyer to your practice methods, notifying staff and patients and determining how long the hand over the process will take.
- Manage Your Clinic Finances
Making sure your books are in order prior to selling your allied healthcare or medical practice should be one of the first steps in preparing for a clinic sale. It is also best practice to ensure your books show positive growth and present a desirable clinic image at least 18 months before listing your clinic for sale.
Another best-practice method when preparing your clinic for sale is to bill with the practice at its full capacity so that the potential buyer can see what the practice is capable of billing in a 12-month period. Also, try to cut expenses where you can and think about resizing your team (up or down) so that you have the correct number of employees for the present workload.
- Utilize Experienced Advisors
Understanding all the details of selling an allied healthcare or medical practice in today’s market can be a complicated process and seeking professional advice once you’re ready to list your clinic for sale can be a useful strategy.
Engaging experienced professionals such as lawyers, financial advisors, and brokers to help you evaluate your clinic, prepare documentation, and manage the sales process, can help you avoid unnecessary mistakes that can cost you time and money. Although seeking professional advice will be an additional cost, you should assume that the potential buyer will most likely consult expert advisors during the sale negotiations, so it pays to be prepared.
- Tend to Your Clinic Appearance
Before selling an allied healthcare or medical practice, it is good to take some time to assess the practice premises to make sure that it does not look visibly run down. These factors might not seem significant at first, however, they could be the deciding factor for a new clinic owner and can also impact the sales price. First impressions count, so going to extra mile to fix up chipped paint, a broken door or leaking tap can’t hurt.
Additionally, maintaining a good online presence can help you attract new patients and build credibility through social networks such as Facebook, LinkedIn, and Instagram and search engines such as Google of course. Having an online presence is vital as most patient referrals come by word of mouth through friends and family or via internet searches. This can be an effective and efficient way to market your practice.
- Know When to Sell
It’s unlikely that you will sell your practice immediately, which is why it is important to give yourself a reasonable timeframe.
As a busy clinician it is not easy to determine what kind of market trends are ahead to ensure that you put the practice for sale at the right time. Here at Healthcare Practice Sales, we can give you are take & impression on the current market of clinic sales. Remember, in the meantime, it is important to keep the clinic running well and have solid financial management, so that your clinic is attractive to potential buyers and always ready for a sale.
At Healthcare Practice Sales, our team of experienced professionals is here to provide you with all the information and options you need when you’re considering the sale of your allied healthcare or medical practice. Get in touch with us today by calling us on 1300 652 361 or email admin@healthcarepracticesales.com.au