Selling your medical practice is much like selling any business. There are steps that need to be taken to prepare the business for a sale and many things to consider once the business is finally on the market. First and foremost, it is important to consult with professionals who have extensive knowledge and experience selling businesses in the medical industry. Working with experienced appraisers, lawyers and brokers, you will get you the guidance you need and you will surely find their experience to be invaluable. Much like a patient trusts their doctor to be a professional medical practitioner, brokers should be trusted to be experts in their industry.
The first steps to consider when selling a medical practice is evaluating three major categories that will determine the value of the business.
- Begin with an evaluation of the tangible assets. These assets, like the name suggests, are physical items like furniture, medical equipment such as X-ray machines and even examination tables and desks.
- Next, review the medical practice’s accounts receivable. As you may know, this is the revenue the practice makes from its patients and their insurance companies. You need to have a clear understanding the money the practice generates.
- Finally, there is the “goodwill.” This is the most important, albeit, intangible asset. What is the practice’s reputation? Is it well-respected? Do patients come back to see the same doctors because they’re trustworthy and professional?
Once these items are considered, you can say you have begun the evaluation of your business in an effort to prepare it for sale.
The next logical step is consulting with a business broker with experience in your industry. Much like selling any business, you will want the sale of your medical practice to remain confidential throughout the process and streamline the process of selecting potential buyers to enter negotiations with. You will also want to make sure you have set a good selling price for your medical practice; a business broker will do the necessary research and conduct a thorough business valuation. A broker has an arsenal of trusted and respectable potential buyers that will be contacted if they feel that there is a possible fit with your practice. When the sale is complete, the practice needs to transition to the buyer. Our business brokers assist in carefully transferring the medical records (with patient approval) and inform patients of the upcoming changes. It is a delicate industry, but when handled by professionals who understand the process, it can be smooth and painless.
The experienced team at Transworld Business Advisors of Houston has the know-how to walk you through the process of selling your medical practice. We are confident you will find their experience makes all the difference and that the transition to the new owner will be stress-free. The many questions floating around in your mind have answers. Call (281) 769-4277 today to schedule an appointment with Houston’s best team of business brokers.