Whether it is time to retire or relocate for personal reasons, those who are looking to sell a medical practice are wise to take steps to help better ensure the transaction goes well. Proactive steps to achieve this goal include:
Wait for the right buyer
Potential buyers could include private equity firms, hospitals, or other practices.
A number of factors will impact which buyers are interested and the seller’s pricing power. The seller will have more power if there is a personal connection for the buyer. A buyer who is interested in the area for personal reasons, such as to be near family, is more likely to consider a higher price compared to those who do not have this connection. As a result, it is wise to choose the timing of the sale carefully.
Taking the time to wait for the right candidate can make a big difference in the final price. For those looking to better ensure the practice continues to serve the community well into the future, waiting for this type of buyer can also increase the likelihood that the practice continues to provide patient care for the long run.
The reputation and current financials are not the only consideration. Look into the likelihood of future growth and take this into consideration when negotiating with a potential buyer. Perhaps the practice recently purchased some tech that has positioned it for growth or has begun negotiations to contract with another hospital system. Bring all of this to the negotiating table to better ensure you get a fair price for the practice.