We believe that making a conscious decision regarding the timing of selling your practice is much more effective than the “waking up one day and thinking ‘I’ve got to sell my Practice right now’” approach. So let’s look at those things that will allow you to maximize your practice value, by planning ahead 3 years down the road. Here is a checklist of items that are important to consider and accomplish 3, 2 and 1 years before putting your practice on the market.
3 year checklist:
- Call your TPSG Regional Broker to have a Practice Valuation/Appraisal performed on your practice.
- Be sure you are keeping thorough, current financial records. Stop paying personal expenses from the practice.
- Delegate management responsibilities to your key staff members, so the work load is not all on you.
- Assess how after hours and weekend emergencies are being handled (emergency rotation or emergency clinic referral). Most buyers are cautious about buying a clinic that is seeing its own emergencies.
- If you have multiple office locations, keep separate financials on each practice even if they are all under one corporation.
- Make sure there are no environmental or zoning concerns with your real estate.
- Consider carefully before you enter into any new leases or vendor inducement agreements longer than 3 years. These can complicate sale negotiations.
2 year Checklist
- Make sure all associate veterinarians are under contract with assignable terms and Non-competes that are defendable.
- Ensure that any lease agreements are assignable with landlord acceptance and that the renewable terms exceed 10 years.
1 year Checklist
- Clean and de-clutter the office inside and out. Make needed repairs, paint, landscape, etc.
- Be sure all Practice software and equipment is updated and working.
- Monitor your online reputation and take action accordingly if needed. Buyers always check the online reviews of the practices they are looking to buy.
- If in a lease space make sure the landlord knows you may be selling (stress the confidentiality of the matter). Ensure they are willing to execute normal landlord consents and assignments that will be required by the potential buyer’s lender.
- If you own the real estate and intend on selling it, order a Restrictive Commercial Real Estate Appraisal or seek a Commercial Broker’s Opinion.
- Consult with your Accountant and Financial Planner to be sure that selling the practice will not create any unexpected financial consequences.
- Call your TPSG Regional Broker to have them assess your Practice’s salability and current market conditions.
We are confident that you will be successful in obtaining Maximum Market Value if you follow this approach and let the TPSG experts guide you through this process of preparation before placing your practice on the market.
Dr. Richard Alker
11401 N. Magnolia Ave.
Ocala, Fl. 34475
850-814-9962
TPSG-Florida Territory
[email protected]
www.totalpracticesolutionsgroup.com