Checklist for Selling a Medical Practice in Texas
If you’re a doctor considering selling your medical practice, it’s crucial to understand the numerous factors involved. Selling your medical practice in Texas is not as straightforward as simply posting a closed sign, receiving payment from the buyer, and moving on. You must follow certain steps, procedures, and guidelines to ensure you are in compliance with the Texas Medical Board and the US Drug Enforcement Administration.
The good news is that the process of closing and selling need not be overwhelming. With careful research and guidance from medical practice brokers, you can effectively navigate this journey and avoid costly mistakes. You can also refer to the checklist below to help you systematically organize your steps to sell your medical practice in Texas.
- Plan for the sale of your practice
Before you decide to sell your medical practice in Texas, it’s crucial to acknowledge and process any emotions associated with this major decision. It’s normal to experience a range of feelings due to a significant change.
Once you’ve taken the time to sit with your emotions, start to identify the unique selling points of your practice that will attract potential buyers—such as a loyal patient base, prime location, or advanced technology. You should also recognize and address any challenges that may hinder the sale, such as outdated equipment or high staff turnover. Understanding these factors early can make the selling process smoother and more successful.
Remember that time is crucial when preparing to sell your practice. The more time you allot for preparations, the more appealing you can make your practice to potential buyers. You’ll also have ample time to identify the right buyer.
Plus, you’ll need time to deal with the following matters:
- Legal: Ensure any outstanding legal issues related to your practice are resolved before you sell. Also, prepare non-disclosure and confidentiality agreements for potential buyers.
- Accounting: Have your adjusted P&L (Profit & Loss) and financial statements ready for at least the last 3 to 5 years. Also, make sure to clean up your accounts receivable.
- Corporate: Make sure your practice is up-to-date, particularly all relevant legal documents, and have copies of incorporation documents, minutes of corporate meetings, and contractual agreements at hand.
- Obtain a professional medical practice valuation
A professional valuation is crucial before you sell your medical practice in Texas. Medical practice valuation specialists can help eliminate the guesswork from this process. They can provide an estimate of what buyers might be willing to pay for your practice.
Valuation experts use different methods to determine the value of your practice. These might include the asset, market, or income approach, or a combination of these. Plus, they’ll likely consider taxes, terms of the deal, the current state of the economy, and the timing of your sale.
- Find a buyer
Selling a medical practice is more than just creating an online listing or working with a broker who doesn’t specialize in this field. It requires careful planning and marketing to make it attractive to the right buyers. Medical practice brokers can help you with this. They will handle the marketing and promotion of your practice to potential buyers with a tailored plan.
- Draft a sales contract
Draft a purchase contract that highlights your practice’s unique aspects to the buyer. Specify whether it’s an entity or asset sale, how much should be paid upfront, and how the remaining payment should be structured.
- Notify your stakeholders and manage legalities
Finally, notify your patients and employees about your plan to sell your practice. You’ll also need to work with the DEA and arrange the transfer and inventory of drugs according to state and federal requirements. If you’re retiring or relocating, notify the DEA in writing, including the Controlled Substance Certificate, and void all controlled substance order forms.
Work with experts
When you’re ready to sell your medical practice in Texas, Strategic Medical Brokers can be your partner in this process. Their experts can handle everything from valuation to marketing, negotiations, and closing. Book a complimentary discovery meeting with them today.