Choosing the Best Medical Office Space For Your Practice
Finding The Best Office Space For Your Clients and Potential Future Buyers
When you decide its time to sell your business, often times, the buyer becomes very important to you. It only makes sense. For your entire lifetime you have built this business, which has supported you and your family and caused you great joys over a lifetime. Many times you have staff members who are part of the team and have been with you many, many years. It is important to you that your patients and staff continue to have a good medical/dental experience even when you are long gone. This is where the dilemma often occurs between selling to a corporate buyer or an individual. In general, corporate buyers are more concerned about the bottom line and will often pay more for your business. However, often times they require you to stay on board for up to three years after closing as an employee running the business. Also certain practices are better targets for corporate buyers based on a myriad of circumstances. In general, larger more visible offices appeal to DSO’s and MSO’s but not always. In summation, its always about the “bottom line”.
REAL EStATE, ITS AN EMOTIONAL DECISION
When deciding whether or not selling your practice is the right move let a professional evaluate your business and who potential buyers could be for your future exit. Although we do not have a “crystal ball”, experience goes a long way in setting up a plan for the upcoming future. Current market conditions play a big role in finding the best buyer. Trends in dentistry and medicine will often dictate your best path to follow. Also, when placing a value on the medical office space, corporate and individual buyers use a different accounting method. While corporate buyers evaluate multipliers and EBITA , individuals use percent (%) of gross revenue calculations.
Here at HPRG we can provide you a “free” analysis to figure out which direction you should proceed. We know this business is your “baby” and we share your emotion in the ultimate sales process.