Buying your first clinic (it may be a Physiotherapy, Podiatry, Chiropractic, GP, Osteopathy, Speech Pathology, Occupational Therapy, Psychology, or other type of clinic) is always exciting. You will have lots of thoughts and emotions running through your head and plenty of different plates to keep spinning during the entire process. With this process potentially being a stressful time, we recommend smart first time clinic buyers take the time to consider these tips for achieving the best results for your first ever practice purchase.
– Try Not to Fall in Love with The Practice
When looking for your first practice to purchase, it is fine to think one practice is better than the others, but it is also smart to consider several others that meet your needs and fall in your price range. Determine, as objectively as possible, which practice will be best for you now and in the future. Falling for a clinic means you are putting yourself at a negotiating disadvantage and may overlook weaknesses and issues.
– Buy with Expansion in Mind
When you purchase your first practice, you may think you will never want to sell it and stay put until retirement. Some purchasers do not think of their first clinic as a financial steppingstone, but it usually is. Make sure you are buying a clinic with some potential.
Also, be cautious about buying a practice that is too big for you. If it is the biggest, most expensive practice in the area, it may be harder to expanded compared to a clinic that is closer to the middle in size and cost.
– Get your Finances in Order Before you Start Looking
Shopping for your first practice can be exhilarating, but if you do not know your financial situation, it can also be disappointing.
Sort out what you can spend or what your borrowing limit is before looking at practices to purchase. Find a lender and get pre-qualified for a loan or (better yet) get pre-approved for a loan. This way, if there are any financial issues to resolve, you can do so in advance and potentially improve your negotiating position. Armed with this information, you will know how much you can afford to spend on a clinic and can begin looking!