- December 3, 2021
- Posted by: New School
- Category: General
Are you thinking of Selling your Medical Practice?
Getting a fresh start in the first quarter is always an optimal time to plan for the coming year. If you are a medical practice owner, you might be thinking about selling your practice. Reasons may include early retirement, a change of geography, or the desire to invest in a new endeavor. There are a number of definite steps you can take to prepare your business for sale. Here is a pre-sale checklist for selling your business:
- Tax Returns – Last three years
- Banking and financial documents, including P & L’s and balance sheets
- Licenses, permits, and inspections
- Property/Lease/Maintenance contracts & documents
- Telecommunications (Internet and Website Management)
- Employee list including job titles, pay rates, and length of service
- Employee hiring, training, and any non-compete or anti-solicitation agreements
- Furniture, Fixtures and Equipment (FFE) lists with an approximate age
- Inventory listing, including cost
- Equipment warranty, lease, and service documents
- Auto/Truck leases, loans or titles if held by the business
- Insurances and Managed Care lists and percentages of sales
- Vendor lists
- Franchise agreements, if applicable
- Procedures performed and price lists
- Any other contractual agreements
A Complete visual inspection of the business premises with a goal of improving any areas that are not acceptable – refresh and replace any areas in need
One thing all of these have in common is getting documents in order. Documents are considered essential as they are a record of your business – from the value to the size and even the staff. A prospective buyer will want to know where your profits come from, what you own or owe, and even how you train your employees. Being prepared to answer any and all of these questions will make your business that much more attractive to the kind of buyer you will want to negotiate with.
Before the Listing
This checklist should also help you determine where you need the most help. No practice owner is expected to have it all organized and figured out right away. In fact, hiring a specialized business broker before you begin the selling process can help you immensely. Not only will an experienced advisor have expertise in your market and industry, but they will also be able to guide you through the extensive process of getting these documents in order and translating what it all means. Also, they are able to tell where your strengths and weaknesses lie, getting you one step closer to making the necessary improvements to make your practice highly coveted by the right potential buyers.
Another great step is to have your P & L’s reviewed by the experts at OptiRova. We can categorize and benchmark your expenses to show you any areas where you may be out of line. We can also help you improve your profitability and help streamline your financial reporting.
Here are some additional tips of legal ramifications that may be involved in the sale of your practice.
If you are looking to start off 2022 with a business sale, do not hesitate for another second. The sooner you prepare, the better. Contact OptiRova today for a no cost, no obligation discussion of your plans for the new year.