Health Pro Realty Blog
Welcome to our blog! Here you will find the latest updates and news from the team at Health-Pro Realty Group. Check back often to learn more about the initiatives we’re taking to help medical practitioners nationwide find the perfect place to establish their business.
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Finding The Best Office Space For Your Clients and Potential Future Buyers
REAL EStATE, ITS AN EMOTIONAL DECISION
Real Estate Negotiations are Key to a Successful Practice Sale and Transition
Don’t overlook your real estate when selling your practice. The location, look and feel of your office is a vital part of your practices success. Especially if you are attempting to sell it now or in the future. You may be in an office building and a lot of new young dentists want a storefront location. You may want to lease the condo you own but the new young buyer may want to buy your space for the same reason you did years ago. The lease or the ownership position you maintain can greatly affect the viability and value of your medical office space. Banks require long term leases to finance transitions and buyers want to have a “market” lease. If the buyer buys the building he is only going to pay market value.
Medical and Dental Practice Owners
As a practice owner, if you own the real estate, will you have capital gains implications if you sell the building? If you assign the lease agreement are you still legally on the hook in the event of a default? Some practice brokers will claim they can help with the leasing or sale of the real estate in addition to the sale of the business. Be careful here! Practice brokers are not licensed real estate brokers and should not be engaged in the real estate business legally. Moreover, they do not have the requisite experience or knowledge to handle your real estate situation. Nor do they have understand the local areas in terms of the data necessary to make a firm decision like market pricing, age range, population density, foot traffic, up and coming areas, etc. I have seen practice brokers try to juggle values of real estate and offices to “make the deal”. The problem is that the business and real estate are valued different by the bank. The practice is based on gross revenues or EBITA but the real estate is valued on comps and CAP rates. That means “mixing” the two is often a recipe for disaster at the goal line of the deal. We recommend a transition expert to sell the business and a real estate expert to sell or lease the real estate.
These are just a few questions you need to be aware of when getting ready to sell your practice.
For a complimentary assessment of your individual situation call Charles Feitel at 301.365.6940 or email me at email@example.com
Is the middle of a pandemic a good time to market your dental or medical practice for sale?
The short answer is ….. maybe.
- If you are a mature dentist or doctor are you concerned about being exposed to the virus?
- How much longer were you going to work in your plans pre-pandemic?
- Has your staffing been under control or has it been stressful?
- What has your office performance been since re-opening?
- In theory, the virus may have pushed values downward but interest rates for buying dentists are at an all time low!
- Are you willing to work in the “new normal”?
Covid-19 and Selling Your Practice
If you are struggling to answer any of these questions or have definitively answered some of them, then it may be time to take action! Whether it be retirement, expansion, or shrinking your practice, there is always a solution to help get you what you desire. If you are interested in selling your practice then learning the proper steps to take prior to jumping ship is something you may want to do. Especially during these uncertain times with Covid-19 still at our doorstep.
Covid -19 changed everything. There is a large possibility certain industries may never be the same in terms of their operations and rules. The medical and dental professions could be those particular industries. Since this pandemic began, we have had lock downs, mask mandates, required use of hand sanitizer and much much more! Our frontline workers, doctors among others, have all been tirelessly working to help us save lives and keep the world moving forward. They alone are tired of wearing all of the PPE garb and may never want to wear it again. Are we certain that this could not become the norm for the future in these industries?
These are things that now need to be considered when purchasing or selling a practice of your own. When leasing or purchasing real estate you need to understand what happened during this pandemic and plan accordingly.
For a free consultation to see if NOW is a good time, call HPRG, THE Medical and Dental Transitions Group!
Our unique sales approach makes us the wise choice for selling your practice. 24 years experience is what it takes to insure you have the most successful transition experience.
Call Charles Feitel at 301.365.6940 or email him at firstname.lastname@example.org
Visit www.hprgrealty.com to see our current available listings