After years of service, and tireless hours at the office, you find your mind now takes you away from the daily grind and more into considering travel, extended time away from your medical practice. But the overhead costs !! So you begin dreaming of a retirement or phasing out of practicing medicine. Problem is…how do you accomplish your goal??
Well, our recommendation is, right from the onset of these ideas/thoughts, to reach out to a professional healthcare practice broker – one who specializes in the sale of dental and medical practice only. These brokers offer a wealth of knowledge, ideas and may provide guidance even if you are years away from finalizing plans.
Maximizing your medical practice’s goodwill
The most valuable part of your practice is the potential for continuity of referrals and patronage; in essence, goodwill. It is the probability that said patronage will continue in the future as it has previously (and with it, the revenue stream the medical practice has sustained for years). There are many factors that comprise this “goodwill” that you have established for the years of operating the medical practice — from simple public awareness of your location and telephone number, to your own style and specialty of practice, to long-term employees that keep the operations and collections of the practice humming without glitches.
So it goes that to insure maximum return for your dental or medical practice upon retirement or sale at any time, preserving the goodwill of the business is essential. Positive Google reviews, retaining long-term staffers, maintaining the schedule and availability constant from one year to the next.
Increased Demands on Your Time is Not the Same as Increased Profitability
No one needs to tell you that the healthcare profession isn’t as profitable as it once was, nor as simple to own a practice. Today, we all carry liability insurance, office policies, malpractice insurance, personal umbrella coverage and any number of other policies for protection against everything from employee heft to sexual harassment. So, when it comes to the value of your medical practice, it’s not how many days you work, how many patients you treat, or other statistic showing how busy you may be — it’s about gross revenues, profitability and sustainability after sale. Bottom line: as you have been told by countless advisors, you need to focus on the business side of your business!
Practice Trends Are Very Important
When buying a medical or dental practice every buyer asks for three years of prior tax returns. So, even the most naïve of consultants and advisors will request this information, and their first review is to consider the running three-year revenue trend. Is income rising or dropping?
So, as you plan for this fateful final step in your career, consider this….If your income has been declining for no other reason other than you have been taking more time off each of the past three years, then you may have converted your once profitable business into a part-time hobby (and the corresponding value of your business has taken a significant hit). In the stock market the catch-phrase is “sell high”. In the medical and dental practice brokerage business, the advice is to sell when the practice is running well, when the business operates on a full-time schedule, when accounts receivable collections are smooth. The alternative does not compensate you sufficiently for your many years of goodwill!
Hiring the Right Broker Makes a Huge Difference
Now that you have made up your mind to sell your medical or dental practice hiring the right broker makes all the difference. From establishing the right selling strategy, to marking the business correctly; from keeping matters confidential to advising when the staff should be notified … and all paperwork and expertise needed from initial call to transaction completion. If your goal is to have a successful seamless transfer, then there is only one broker to call – with over 37 years of experience in brokering medical and dental practices for sale in California there is really only one choice in California to personally guide you through the process – Lou Bermudez (818-999-9595). As one of the founders of the practices sale industry near forty years ago, Mr. Bermudez has unmatched credentials, but as importantly, his work ethic and desire to secure for you the maximum return for your practice while simultaneously pledging his assistance to the buyer sol that they may reap the benefits of their purchase – that takes compassion, consideration and a delicate balance between practice hype and informative documentation. The objective is an achievable win-win for bother buyer and seller with Lou Bermudez, Practice Sales & Appraisals as the facilitator.