What Does it REALLY Take to Sell Your Own Practice? Plus Special Savings Offer!
Updated: Jun 9, 2020
We talk to A LOT of doctors who are considering selling their practice. They come from all over the US, have practices of every size, and are being sold for a myriad of reasons. But they all have one thing in common—they want to get the maximum return on this investment they have been building all these years. Of course they do! And I bet you do, too. And this drive to maximize return leads many doctors to consider selling their own practice. How hard can it be, after all? You can throw an ad on Planet Chiropractic, and you certainly know how much you’d like to sell it for. What do you need a broker for anyway?
Well, not to toot our own horn, but we do a pretty bang up job earning that 7% commission. And before you decide you don’t need us, consider the following 20 invaluable questions to ask yourself to make sure you can cover all your bases for selling a practice on your own:
The first area of concern is- are you getting enough attention from prospective buyers? Specifically,
1. How many ads do you have up?
2. Are you listing your practice in all the best places?
3. Do you have the time to actively manage the listings, keeping them fresh and at the top of the page?
4. Are your listings portraying your practice in the best possible light?
5. Do you have an attractive, professionally designed webpage devoted to selling your practice?
6. Are you able to track how many calls, emails and web site visits are coming from each marketing source so you are allocating your marketing dollars as efficiently as possible?
At Progressive Practice Sales we pride ourselves on our comprehensive marketing strategy. This includes.
A carefully crafted strategy to attract potential online buyers
An aggressive nationwide marketing package with your practice listed in over 20 locations (as compared to 2-10 industry average), and active management of the listings to keep them new, fresh, and at the top of the page
Follow-up advertising to all the previous visitors to your specific landing page, so that as they browse other listings, they are constantly being reminded of your –vastly superior :)- listing
Highly search engine optimized landing page with full color images & high-caliber sales copy. We use proven concepts from the real estate and sales industries to promote your clinic. This includes detailed listings with pictures and compelling sales copy to attract potential buyers and help them connect with the practice and emotionally visualize themselves as the new owners
Of course, attracting potential buyers is only part of the process. You also need to consider how you will handle the next steps once you have an interested party:
7. How organized and clean are your financial statements, equipment depreciations and practice statistics? When done well these add value (read $$$) to your practice, when they are incomplete or have errors they reduce the confidence the buyer has in the integrity of your practice
8. Have you properly accounted for addbacks in your financial statements? This can dramatically alter your practices value- but it has to be done in a way that inspires confidence in the buyer
9. Who will compile the detailed practice information package? This needs to be comparable in scope to those the buyer is getting from practices being offered by professional brokers
10. Who will respond to inquiries on the practice and prequalify the potential buyers? Are you comfortable asking these doctors about their credit histories and financial situations?
11. Do you have time to adequately respond to phone calls and emails from potential buyers between treating patients and the other demands of your already busy life?
12. How have you determined the sales price of your practice? Is it based on general rules of thumb or has it been professionally appraised to factor in the intangibles and goodwill that make your practice unique?
13. If you have determined your sales price based on generic formulas or the sales price of other practices, are you confident it will stand up in the face of tough negotiations, possibly by buyers who have hired a professional broker to represent them in this process?
At Progressive Practice Sales we have a proven formula for streamlining the complex process of preparing a practice for sale. On your own the process could take months, we can help you get in done in just days, with a professionally designed info package that will really stand out from anything else prospective buyers are seeing. Our full service buyer’s package includes:
An in-depth valuation of your practices current market value. This is not a “rule of thumb” evaluation based on standard formulas; our appraisal takes into account all the intangibles that can significantly alter your practices value. This is the kind of in-depth analysis that will ensure that you get top dollar for your practice, and will stand up in tough negotiations
Assistance with preparing the detailed practice information package, including updating financial statements to properly account for add-backs, equipment depreciation, practice statistics and more
Creation of an attractive, full color sales brochure with even more pictures and detailed information for pre-qualified buyers who have signed our confidentiality agreement
Full management of all contact with potential buyers, including pre-qualification and confidentiality agreements
Once an interested party is secured, the stakes are very high and it is even more important to make sure all of your bases are covered.
14. Are you prepared to negotiate the complex details of a practice sale contract?
15. Are you equipped to navigate the complexities and unforeseen problems that are inherent to the practice sales process without professional assistance?
16. Do you have the resources, knowledge and connections to design the optimal financing package?
17. Will you consider any seller financing? Do you have strategies in place to maximally protect yourself?
18. Do you have a good attorney? Hiring the wrong attorney can be an expensive mistake!
19. Do you have a tax allocation strategy in place to minimize your tax burden?
20. Do you have a strategy in place to maximize growth through the selling process so there are no hang-ups at closing? Will you have time to execute it if you are tied up in the details of the sales process?
As you can see, this is a critical time to have access to a professional broker who can assist you through the complexities of this process. As part of our comprehensive sellers package, we will:
Negotiate the best price and terms on your behalf
Aid in locating and designing the optimal financing package
Help assemble your team through our network of expert attorneys, tax accountants and financiers
Serve as an adviser and advocate throughout sales process , sharing our knowledge of best industry practices and our hard-won personal experiences- so you don’t have to learn these lessons the hard way
As you can see, selling a practice starts with marketing your practice and finding a buyer- but it involves so much more. While you may feel not hiring a broker and saving that money is a prudent decision, the truth is our services often more than pay for themselves in a higher sales price and an expedited sale.
If, after reading over this list, you feel a little overwhelmed, I’d love to talk with you about how my team at Progressive Practice Sales can help you. This is a no-obligation, completely free consultation- so shoot me an email and let’s set it up. Oh- and for a limited time I am also offering a discounted price on our full service valuation and listing package. We regularly charge $1399, but right now it’s only $995. So let’s talk soon!