Unfortunately, timing is a factor which is often overlooked and can be extremely detrimental to marketability and
practice value if executed improperly. Practice sale situations are commonly driven by other factors within a larger transition plan for the retiring doctor. It is imperative that the practice be brought to market early enough to achieve the objective. While timing to market may not guarantee that the clinic will sell, it can increase the probability that full value can be realized. Even small, marginally profitable practices can have inherent value which can may be capitalized upon if priced and marketed properly. The most unfortunate cases of ill timing occur when mature, premium practices lose tremendous value. This can occur when sellers hold out too long to bring the practice to market, wait for "perfect deal" to materialize (which may never occur), or simply get burned out and lose the desire to maintain the practice at full productivity. While a practice in decline may still attract a Buyer, the Seller will need to make an appropriate discount to asking price and recognize that obtaining financing for the acquisition will be much more challenging. Overall it is important for Sellers to 1) Prepare the practice for sale in advance 2) Bring the practice to market in a timely manner 3) Maintain the business at full capacity throughout the process 4) Be flexible in a buyer's market 5) Be willing to act when a good selling opportunity presents itself 6) Rely on a trustworthy sales adviser and be willing to take advice. The transaction process is not perfect, but a successful outcome is more likely when the a proper approach and mindset are brought into the selling process.
Written by Transition Consultants