Selling A Medical Practice: No Easy Task

July 21, 2008 · 77 views · Filed Under General Health

Thinking about how to sell a medical practice, dental practice or podiatric practice? Are you thinking abot selling it your self (For Sale By Owner or FSBO)? You may wish to reconsider going-it-alone.Â Just as you would not recommend that a patient treat their own tooth abcess, duodenal ulcer, or bunion, we strongly suggest that if you are considering selling your medical practice, that you utilize an experienced medical practice broker. Did you know that with regrd to medical practice sales, our research indicates that 98% of all for-sale-by-owner medical practice sales fail? Why? What are the 5 biggest deal busters? How much is your practice really worth? What is Fair Market Value? What is N.O.I and Capitalization Rate?

The sale of a medical practice, dental practice or podiatric practice is a complicated multiple step process conducted in an environment of confidentiality. The process requires expertise in valuation, marketing, information provision, negotiations, due diligence facilitation, legal documentation preparation, and administrative planning for succession of ownership. Let’s say it was as easy as just finding a buyer - what will you do AFTER you find a buyer.

There are over 60 sequence of events that must occur. Notice: I used the term “sequence” - all documentation and processes must occur in order, on time, and professionally recorded and distributed.

Business brokers who specialize in medical practice sales are trained professionals schooled in courtesy and diplomacy. American Doctor Sales Broker, Tony Abbruzzese states, “We are ready to get involved and help you through the myriad of details and red tape toward the successful sale of your medical, dental, or podiatric practice.”

Negotiations of medical, dental, and podiatric practices are most effective when experienced brokers have prepared properly. Tony Abbruzzese further mentions that “Medical practice brokers understand this reality, so prior to our games, meetings or negotiations with potential buyers, we make great efforts to understand the details relating to the medical practices we represent, their market niche, and industry, in addition to having the supporting documentation assembled to support our presentation.

The emphasis on preparation has been and continues to be an important characteristic of our transactional success. American Doctor Sales brokers’ mention “Many doctors are not real happy about filling out a bunch of forms to get started but essentially, to sell an asset, the asset must be packaged properly and that’s what we do - we bundle up all details and present a dynamic sale opportunity.”

The sale of a medical, dental, or podiatric practice always starts off with gathering financial data and practice dynamics and stats. If you re thinking about selling your practice, Americn Doctor sales recommends that you do the following to prepare. If you plan to sell your medical practice, dental practice or podiatric practice in 2008;

1. Gather your 2005, 2006, 2007 tax returns 2. Have your CPA prepare a Tax Basis Year-to-Date P & L Statement 3. Dust off the walls, equipment, and touch up the practice’s decor 4. Clear out any and all items not used in daily operations 5. Speak with a medical practice broker, CPA, and attorney first

Americn Doctor Sales represents dentists, podiatrists, MD’s and DO’s nationally. If a seller is prepared going into a sale, the transaction is much easier for all parties invloved. Remember, selling a medical practice, dental practice, or podiatry practice is much more involved than simply finding a buyer just as a deep cut is more complicated than slapping a band aid over the cut. Know what you’re up against. Know the details before you jump in to a sale. As always, consult a broker or your attorney before you begin any transaction. If you’re going to sell your medical practice, dental practice, or podiatric practice, American Doctor Sales wishes you the best of luck and a properous sale.

Tony Abbruzzese is a business broker specializing in medical practice sales. Based on Ohio, Tony Abbruzzese is the lead medical practice broker for American Doctor Sales, a national full service medical practice brokerage.

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