Selling a medical practice is a natural choice for a large majority of solo practitioners and practice owners. There is no reason not to do so. Whether to fund retirement or the transition to a new career, the sale brings several benefits for the seller.
The process, however, can be quite stressful and full of paperwork if you are not prepared for it.
Here are five steps you need to take to make sure that you sell your medical practice with low stress and high profits:
1) Make Sure Your Financial Records Are Organized
One of the most important elements in selling a medical practice is having your financial records in order. This will give buyers confidence in the stability and profitability of the practice. It will also make the due diligence process much smoother for both parties.
Before they invest in a medical business, potential buyers must feel at ease with a company. Providing your medical practice’s financial reports for at least the previous three years is one method to build confidence.
Choose to utilize official financial records, such as tax returns, accountant-prepared financial statements, and management reports instead of your own.
2) Present an Accurate Statement of Cash Flow
When you are ready to sell your medical practice, you will need to provide a statement of cash flow. This is a summary of the inflows and outflows of cash for the business over a period of time.
The statement is important because it shows potential buyers how much money is available to invest in the growth of the business. It also provides insight into the company’s financial health.
Make sure you review any personal expenses, such as traveling expenses, in your financial records. These should be eliminated from your statement of your recurring cash flow that you present to a potential buyer.
3) Request a Valuation from a Professional
As a medical practice owner, you must have a clear understanding of what your business is worth before you put it on the market.
You can request a valuation from a certified professional appraiser or broker. They will analyze your financial records and compare your practice to others in the industry.
This process will provide you with an accurate market value for your practice so that you know you’re receiving a fair price and aren’t walking away with all of the money that you deserve.
4) Continue Running the Practice Normally
During the process of selling your medical practice, it is important to maintain business as usual. This means continuing to provide high-quality patient care and running the day-to-day operations of the business.
If potential buyers see that the revenue has declined or that the practice is not being run efficiently, it will decrease the value of the business.
5) Hire a Professional to Help With the Sale
Selling a medical practice is a complex process. There are many steps involved and a lot of paperwork.
To make sure the process goes smoothly, it is important to hire a professional to help with the sale. They will handle all of the details and negotiations so that you can focus on running your business.
The right medical practice broker, such as Strategic Medical Brokers, will help you maximize the value of your practice and make sure you are getting a fair price.
Hiring a professional to help with the sale of your medical practice is an important step in the process. It will ensure that the process is low stress and high profit for you.
These are five steps you need to take to sell your medical practice with low stress and high profits. If you follow these steps, you will be able to maximize the value of your business and get a fair price for it.