A future sale always seems very far off – but building the practice so it is poised for an optimal sale at any time will let you agilely respond to the unexpected. Investor interest in chiropractic acquisitions is skyrocketing, creating unforeseen high-value sale opportunities for many chiropractors. At the other end of the spectrum, unexpected health challenges, life changes or financial emergencies force other doctors into a sudden need for a sale. In either scenario, you won’t get the best price unless you are prepared. And most doctors are not prepared – almost 90% of selling doctors come to us unprepared to list their practice for optimal sale outcomes.
The average doctor will spend 80,000 hours building their practice, and will invest hundreds of thousands of dollars in the practice along the way. Unfortunately, without understanding what really impacts the practice’s value, it’s possible that many of those hours and dollars invested may actually decrease its value.
To capture top value, you need an exit strategy-focused valuation long before your practice is put on the market. This gives you the key understanding of your current value, and the optimal amount of time needed to strategically invest your time and resources to make the necessary changes to achieve a higher future selling price.
However, it’s important to understand that not just any valuation will give you a truly reliable value. If you’re like most doctors you’ve been focused on your patients, while business operations are an afterthought. The problem is that most valuations don’t start where you are at. They assume your practice data is ready for analysis, but in most cases, there are discrepancies in the practice data that need to be resolved before the valuation + analysis can be a useful tool. Without correcting these discrepancies, and addressing the unique aspects of chiropractic practice ownership, your valuation could be inaccurate by tens (or hundreds!) of thousands of dollars, leading you to make future plans that are not based on the markets reality. This is a huge risk that you don’t need to take, because there is a better option!
At PPS our revolutionary valuation approach starts with a thorough analysis of the practice data to ensure it is valuation-ready. Our experience consulting on thousands of chiropractic practice sales gives us key insights into inconsistencies in the practice data that could skew the valuation results and have a direct impact on funding your practice sale. Once these are corrected, we can complete our valuation of the practice, providing you with a highly accurate valuation that truly empowers you to make the best decisions.
Using the valuation as a basis, we construct a thorough Future Planning analysis of the clinic including:
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Current strengths in the sale marketplace
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Likely challenges to salability and/or obtaining top value
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Comparative analysis of the likelihood of success + profitability in various exit strategy models
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Action steps to increase clinic value + mitigate profit and transferability challenges
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What NOT to do so you don’t inadvertently create new sale or value challenges
Why Use PPS Future Planning
+ Sale Preparation Services?
Built for Chiropractic Clinics
PPS has significant + current experience valuing + selling chiropractic clinics. This is critical for obtaining an accurate opinion of value, which is the basis of your Future Planning + Exit Strategy. One of the most catastrophic mistakes a DC can make is procuring a valuation from a generalist, as chiropractic clinics are very unique businesses. It requires specific training and experience to properly value the practice’s intangible benefits. A valuator that is inexperienced in chiropractic sales can lead you to base all of your Future Planning on incorrect numbers + sale strategies, eliminating your ability to strategically plan to achieve the highest future value.
Prepare for BIG Opportunities
As investor interest in chiropractic grows, there will be opportunities for many doctors to strategically sell for historically high pricing multiples. An exit strategy analysis is the perfect tool to help you understand how to best prepare your practice to take advantage of coming opportunities. Investor interest in chiropractic is predicted to continue to grow over the next five years, making this a great time to prepare your practice for the most advantageous sale terms before investor interest moves to a new industry.
Thorough Analysis for Highest Accuracy
A PPS Future Plan is a complex business + financial analysis, performed by an experienced team of professionals who demonstrate an exceptional level of attention to detail. Beware the broker or valuation company that simply takes your financial data and runs it through a series of formulas - maybe even while you are on the phone with them! This valuation will be surface-level at best, with a high likelihood of being inaccurate. It will be impossible for you to optimize your future sale based on such a limited and low-value analysis.
Invaluable Insights
A PPS Future Planning report gives you true insights into your future options and provides a roadmap to help you make strategic decisions for your practice and your future. This comprehensive report provides a comparative analysis of your likely success + profitability in various exit strategy models, with action steps to increase clinic value + mitigate profit and transferability challenges – and details of what NOT to do so you don’t inadvertently create new sale or value challenges as you enter the final stretch of clinic ownership. This helps you make the best decisions to strategically increase both value and salability as you move towards a future sale.
Protect Your Practice + Peace of Mind with Future Planning + Sale Preparation Services
Basic Future Planning Analysis + Report
This economical, abbreviated Future Planning package is perfect for straightforward chiropractic practices that are four years or more away from a sale. This package provides an abbreviated opinion of value + blueprint for strategically improving the practice value + salability. Because the valuation + analysis are based on an abbreviated clinic data package, this service also provides a faster turnaround. If you have a more complex practice (with multiple service lines, practitioners, or a high-level of tax strategy), or you are planning a sale in three years or less, you will be better served by the more comprehensive Premium Future Planning Package (see details below).
The Basic Future Planning package includes:
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A Clinic Review to establish the estimated current practice value
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A summary of the key value drivers that increase your practice value
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A summary of the operational risk factors that detract practice value
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Summary of general steps to increase the practice’s value + salability
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A thirty-minute consultation with a PPS Business Analyst to discuss your Future Planning strategy
Cost :: $1599
Timeframe :: 3 weeks once all required information is received
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A Comprehensive Valuation to establish a highly accurate current practice value
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A summary of the key value drivers that increase your practice value
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A summary of the operational risk factors that detract practice value
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Key insights to prioritize value-building practice changes
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An action plan of specific steps + strategies to increase the practice’s value + salability
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Comparative analysis of likely success + profitability in various exit strategy models
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A sixty-minute consultation with a PPS Business Analyst to discuss your Future Planning strategy
Premium Future Planning Analysis + Report
Best for complex clinics or doctors planning 2-3 years in advance
This premium, comprehensive Future Planning package is perfect for chiropractic practices that are three years or less away from a sale, as well as more complex practices (those with multiple service lines, practitioners, or a high-level of tax strategy). This package starts with a full valuation to determine a precise opinion of value. This is used to generate a comprehensive blueprint of multiple approaches to strategically improve the practice value + salability.
The Premium Future Planning package includes:
Cost :: $5999
Timeframe :: 6-8 weeks once all required information is received
* Success fees vary by state and will be subject to current PPS rates and minimums at the time of closing.
Be “Sale Ready” with the PPS Contingency Plan
This forward-thinking service is a life insurance policy for your practice. The Contingency Plan puts all the pieces in place to have a practice value + marketing package prepared for an immediate listing in the unthinkable case of a sudden health emergency or change in life circumstances. This protects your family from dealing with the intricacies of preparing the practice for sale during a challenging time, and provides tremendous protection against lost practice value should the clinic be forced to close suddenly due to loss of the treating doctor.
The Contingency Plan can also be used to privately list a practice where an extended sale timeline is anticipated, such as a practice in a very rural location or one that employs a very niche practice technique where an ideal buyer may be more difficult to procure. PPS will share your details of your private listing with prospective buyers that would be a good fit for your practice, creating sale opportunities while avoiding the challenges of a multi-year public listing. And your Contingency Plan payments are credited to your success fee* upon a closed sale.
Upfront Fee :: $650
Cost :: $50 monthly
Timeframe :: 6-8 weeks once all required information is received
- John Wooden