As with any major decision and transformation, the three P’s are crucial… preparation, planning and patience. After you have made a decision to sell, it could take a few years to get your practice into a solid financial condition that maximises the value of the business.
Your reasons may be many, from retirement to just a refocus of your practice, but whatever the reasons for the sale there are a few matters to bear in mind before you take the plunge and locate a new owner for the practice which you built from scratch.
Here are some quick issues to be aware of-
- Always get the right advice
Having the right advisers is critical to making certain not only that you maximise your sale price but also that you minimise any personal pressure. Business bookers are a great help. A broker will be able to narrow the field of suitable buyers and will also be able to arrange introductions to other key advisers who protect you against unexpected tax and legal issues.
The importance of good tax advice at an early stage cannot be overstated. Another benefit of engaging a professional to steer you through the sale process is so your plans remain confidential, and the right buyers are approached discreetly.
- Make sure your records are ship shape
You already know the importance of your patient’s safety. The same issues arise when selling your practice. A prospective buyer is likely to demand complete, secure and accurate record-keeping. Your accounting records will show a buyer about the financial health of your practice. That is why we recommend hiring an experienced accountant who will alert you to any potential issues a buyer might have.
Similarly, expert legal advice is a must. An experienced attorney can tell you what you need in order to sell the business, such as; security interests to be discharged, leases on equipment and premises, and licences that need to be assigned or re-negotiated.
- Don’t expect to take time off right away
You will need to plan a handover and marketing strategy for your patients and staff. This will include introductions at an appropriate time to the principals of the practice and key staff. Marketing strategies may include local advertising as well as writing to patients individually in order to manage patient relations. This takes time.
- Be aware of your ongoing exposure
Don’t think that your liability for your past practice ends upon its sale.
A buyer may not indemnify you for liability that you or your practice incurred prior to them acquiring it. This highlights the importance of ensuring that your practice is insured not only while you own it but also that you have continuity of cover after you leave.
In the event that a claim later arises, you must also have access to the historical records of your practice. Therefore, securing a right to access those records and obtaining the assistance of new owners, are important inclusions in the sale terms.
Tego Insurance Understands The Intricacies Of Selling Your Practice
Talk to Tego Insurance about protecting yourself from claims relating to your former practice. Plus remember, it is never too early to start planning as matters related to selling a medical practice can be complex
As Australian medical indemnity insurance providers, we understand the intricacies and risks involved in selling your practice.. We are experts in medical indemnity insurance, medical malpractice insurance, doctors indemnity insurance, gp medical indemnity insurance, medical practice insurance, and more. If you are a health practitioner with Tego, we offer 24/7 medico-legal advice and support in regards to what you need to know about the risks involved with selling your business.
The recommendations contained in this publication must exercise their own independent skill or judgment or seek appropriate professional advice relevant to their own particular practice. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Tego Insurance Pty Ltd is not responsible to you or anyone else for any loss suffered in connection with the use of this information.
All content on this page has been written in a generic way, and has not been presented with any knowledge of your personal objectives or financial needs.