Brokers and Medical Advisory Partners
Most brokers and advisors will tell you selling your practice is largely about the numbers. By now you have heard scenarios like 65-85% of gross sales. Sometimes CPA’s use the term EBITA or gross multipliers. All of these methods are important to making sure the office is listed for the appropriate number. After all, if the price is too low you leave money on the table and if the list price is too high it may never sell. Regardless of which valuation method is used or how the price is calculated, getting the right price is important to the transaction.
However the non-revenue aspect of the deal may be just as important. This may confuse you because you figure if you can sell for the number you want all is good! Let me give some specific examples of what I am talking about to better illustrate this picture. If you opened your office 25-35 years ago your office is more than a business. Staff and patient care is extremely important to you. Sure money is a big deal but after this long now its about more than just money. Some staff members have become family. People have worked for you for over 20 years. How will they be treated by the new ownership? Moreover, you have a “culture” in your office that everyone is used to. Will that “culture” continue with the new owner? Additionally, all dentists have a certain dentistry philosophy. Different people practice different ways. It is not all black and white and just as simple as creating a treatment plan and adhering to it.
So when you engage your broker have these discussions up front. Use the discovery method to find answers.
Questions medical professionals should ask when selling or buying a medical practice or office space
- Who is the ideal buyer?
- How long do you want to keep working?
- Can you give up the control?
- How involved and how long do you want to stick around?
Answering these simple questions now will insure you sell your business to the “right “ person! For a free consultation reach out to Charles Feitel at 240 372 4867 or firstname.lastname@example.org. View our current listings at www.hprgrealty.com.