Since you are making plans to retire, you obviously want to get the most money that you can as you sell your medical practice, which means that planning ahead will be essential. However, your discretion when you are making those plans can also impact the offers that you're likely to receive in the coming months, as will your ability to show acceptable profits for at least three years before the practice goes on the market. Therefore, if you're planning now for a future that doesn't involve going to work every day at your medical office or maintaining control of the practice in any way, it's best to be aware of the following advice for maximizing your profits from the sale of your business as you retire.
Plan Ahead For The Sale And Determine What To Expect
Given today's market for established medical offices, finding a buyer is often easy for established, profitable practices. However, negotiating to get the best price, terms and other pertinent matters can be quite challenging. To have a better idea of what to expect, now would be a good time to start networking, if you have not already done so.
For instance, since recent estimates are that less than half of all medical practices are owned by doctors, you might find that selling to other physicians is not a viable option. Instead, this is a good opportunity to find out if any of the hospitals in your area have acquired new medical practices recently. If so, determining any details you can about those sales might help you to make appropriate plans for your own business.
Be Discreet About Your Plans
Discretion in the time leading up to the sale, even if you do not plan to make that change for a year or more, is crucial for several different reasons. For instance, if your patients know that sometime soon you will be leaving your practice, they might decide to find another doctor now to avoid the rush later. Alternatively, they might quit referring their friends or family members to your practice, both of which will negatively impact your profits.
Since, as mentioned previously, your profits for at least the preceding three years will directly impact the price you ask and ultimately agree on for the sale of your practice, your revenue during that time will be even more important than they would be otherwise. Therefore, it is best to take any necessary steps to improve your profits and maintain good relationships with your patients and their insurance companies now, in order to reap the benefits of doing so when you are ready to retire. Until it's impossible or impractical to avoid mentioning, it's best to not share with employees, partners, patients, etc. of your plans for the future.
In conclusion, selling a medical practice can be quite lucrative and might be even more so if you can take the time to adequately prepare for that event. As a result, it's a good idea to consider the advice above as you are preparing for that big change.