A formal clinic and business transition plan puts the goals, priorities and strategies in place for a successful transition. Without a clearly defined plan, buyers are leaving their personal and financial future to chance.
If running a clinic as a solo practitioner, and not willing to provide a transition period, this can naturally deter some potential buyers.
It is becoming more favourable that vendors stay on for transitions periods post-sale to ensure the Goodwill is retained. This can be for a period of 3-6 months, or even up to 24 months.
Below are some tips for a smooth changeover.
Stay on for a transition period – You can serve as a practitioner, advisor or consultant for a predetermined period of time. This can add some much-needed stability during the transitional period.
Assist the owner with changes – Patients may react unfavourably to sweeping changes. Therefore, in the beginning, less is more. Showing you accept and embrace the new owners’ changes will also soften the impact.
Employees and Contractors – Take the time to ensure an appropriate sit-down meeting is arranged with the people who work for the clinic and are now under the new owner’s guidance. Pay close attention to the morale of the current employees and contractors. It’s inevitable that some employees and or contractors will be worried about the future of their employment and the clinic. Do whatever you can to help maintain and even boost employee or contractor morale.
Current processes – The new owner will inevitably want to change a few processes and amend the clinic to their own business model but it is important you show the new owner the exact way the clinic is currently run that way the new owner can make informed decisions on changing clinic policies and procedures.
Vendors – If you’re running a large clinic, there may be many referrers or businesses you have contracts or arrangements with. (e.g. GP clinics, Aged Care homes). You may not be able to arrange a face to face meeting with each person however, it is very important to make contact with them and provide a suitable introduction.
Patients – As noted previously, patients may not embrace the change. If you feel you have a good relationship with the new owner come to the end of your transition period, holding a small morning tea for the staff can show they are going to be left in safe and reliable hands.
If you are unsure what may be further essential for a successful transition period, the team and Healthcare Practice Sales will help you through the entire process.