But I Already Have a Buyer- Why Do I Need a Broker?
Updated: Jun 9, 2020
One of the more common scenarios we see is a doctor who wants to sell their practice to an associate (or another established buyer.) The selling doctor comes to us to appraise the practice only; they wonder why they would even need a broker. They already have the buyer, and they will use an attorney to draft the contract… What else could we possibly bring to the table? Well, I am so glad you asked!!
That common misconception can make a practice sale drag on for months, cost the seller thousands of dollars in unnecessary legal fees- and even kill the deal all together. So let’s save all of you from those disasters by learning more about the sales process, shall we?
While finding the optimal buyer for each practice we represent is a big part of our work, it’s really only the beginning. To avoid completely putting you to sleep I will not itemize out the tasks that need to be checked off for a practice sale, and will instead give you an overview of the main ways we optimize the sales process:
We negotiate the best price and terms for the practice sale contract. This includes the obvious and the not so obvious… With proper- and often creative- deal structures our team can save a deal from the bank’s chopping block. And if you are considering owner financing for part (or all) of your practice sale, we can help mitigate your risk. We also help plan for optimal asset allocation (for maximum tax benefit) and walk you through the best options for a wide range of contractual options. In this area, it is vital to understand that you don’t know what you don’t know. It’s an area our assistance can be invaluable.
The details- and the paperwork- related to a practice sale are astounding. This starts with your practice valuation but continues through the due diligence period, and often up until the closing date. We manage this process so you are not mired down in the details. Because if you are tied up with all of these details, who is seeing the patients? Who is keeping the practice’s numbers up? This is NOT the time to let numbers drop. Buyers want to make sure they are getting what they pay for- let the numbers drop between the offer and closing, and you are likely to get hit with a request to drop the sales price. And with so many details to take care of AND a busy practice to care for, it can take a while to get this thing to closing. If the deal drags on for too long, the odds that it will fall apart completely start to climb- putting you back to square one, or at a point where you have to concede far too much to get the deal going again.
We coordinate with all parties (buyer, buyers broker, all attorneys, all accountants, etc) on the details of sale, and provide a useful buffer between the buyer and seller. This can be extremely helpful to maintain the relationship during negotiations and when problems and disagreements occur- which they always do! And when they do, the last thing you want is two $400-an-hour attorneys hashing it out.
We utilize the expertise of our cohesive team to provide you with an optimal, streamlined experience from obtaining financing to finalizing the contract. This saves you time and money.
Finally, we serve as advisers and advocates throughout sales and the transition 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.
Ultimately, using our services makes the sales process faster, smoother and more efficient. This makes your buyer feel safe- their questions are being answered, their concerns being addressed… They are secure that they are buying a good investment. And this lets you focus on keeping your practice strong during this critical time, confident that the sale is progressing swiftly while we handle the details of the sale behind the scenes. In summary, saving you time, money, and many headaches. All in a good days work my friends, all in a day’s work... Until next time!