A recent article from Axial entitled “How to Reduce Owner Dependence Before a Sale” discusses four strategies to decrease how active an owner is in the business before going to market. When a business is very dependent on any one particular person, it increases the potential risk that a new owner is taking on. Therefore, by improving the business’s ability to run without the owner present before going to market, you can increase the number of potential buyers and possibly the value of your business. Below are a few suggestions to help mitigate the risk of owner dependence:
Make moves well in advance of the desired sale
Bring in an independent board
Build out the management team
Document key information
Working closely with a professional business broker is the first step in evaluating the areas of your business that need to be addressed before marketing it for sale. Get a handle on owner dependence and other risks that a buyer may discover during the due diligence process by beginning the process well before it’s time to sell.
Strategic Medical Brokers’ greatest wish is to see you achieve your goal of buying or selling a medical practice. It is our privilege to be a part of one of the most significant decisions of your life. We will guide you, advise you and celebrate with you.