The Definitive Guide to Selling a Medical Practice in 2021
When considering selling your medical practice, there are a lot of things to think about. The field of healthcare is constantly changing, and government and insurance regulations largely affect this industry. That means that in order to sell a medical practice, there are some things you need to do that make yourself appealing to buyers of all kinds.
Here are some of those keys, things that make your medical practice more marketable.
Technology matters, not only to patients but to those who consider buying your business as well. There are several aspects of this, and to be a desirable practice, your technology must be as up-to-date as possible.
- Electronic Medical Records (EMR): There are different systems for record-keeping, and the most modern are cloud computing systems that are easy to manage and don’t require large, on-site servers. The latest technology will increase the value of your practice.
- In-Office Tools: Things like laptops and tablets that nurses and doctors can use rather than paper charts not only make your office more sophisticated, but they save employees time, which means your practice is more profitable.
- Apps, Wearable Devices, and More: Many practices now have proprietary apps and the ability to gather certain data from wearable devices, making diagnosis timelier, appointment scheduling and other tasks easier, and communication faster. Embrace them to add value to your practice.
The latest technology and the knowledge of how to use it will make your medical practice easier to sell.
The more choices patients have when it comes to their care, the more important your reputation and specifically online reviews are to your practice. There are programs out there that let you gather reviews through text messages and email requests, routing those reviews to where you need them most.
Embrace this principle of reputation management, but above all make sure your staff embraces principles of customer service that keep your patients happy. Demonstrating good reviews and a solid reputation in your community make your practice more appealing to buyers.
Know Your Cash Flow
There are a couple of sure ways to appeal to larger medical groups and even private equity groups who might wish to buy and grow your business. One of the primary ones is cash flow. The better understanding you have of cash flow, and the more you can demonstrate, the better.
This probably means having your accountant recast your books to be more profit-oriented rather than tax-friendly. Your accountant will know more about this, and when you engage with a business broker they can recommend the best way to demonstrate cash flow to a potential buyer.
Know Your Growth Projections
The other thing that buyers of all types look for is growth projections. If your practice has been growing year over year and can be projected to continue doing so, it will be much easier for you to sell. This means not only knowing your own growth potential but that of your industry as well.
This applies especially if you have a specialty. For instance, the cardiac specialty continues to grow as the baby boomer population ages and people tend to live longer. This makes it more likely they will at some time deal with health issues. Knowing the growth potential of your specialty helps make your practice even more appealing to potential buyers.
Think About Your Buyer
Lastly, if you are going to sell your medical practice, you need to be aware of what kind of buyer you want to target. Are you willing to work alongside them in the business for a while? Do you want to sell to a medical group or hospital, or do you want to keep your practice an independent one?
All of these things can be factors in how you market your practice and the various things you do to get it ready to sell.
At first, this may all seem a bit complicated, but the best way to simplify things is to start by putting together a team to help you. That team starts with a business broker, someone who is skilled in selling a medical practice and who knows how to match you with the right buyer at the right time. A business broker will also know more about other businesses for sale in your area and know how to help yours stand out from the rest.
In the Sacramento, California area and looking to sell your medical practice? Contact us here at Rogerson Business Services today. We can help with the sale of your practice every step along the way.
Read more: Selling your Cardiology Practice