Selling Your Specialty Medical Practice in California
Selling your specialty medical practice anywhere can be a complex project.
Many physicians, once they have opened their practice, tend to specialize in certain fields. This specialization offers several advantages over a General Practice for many doctors, and also makes the medical practice unique. In many cases, this can make it easier to sell when the physician wants to exit the business, but it also comes with some challenges.
What if you are planning to sell your unique specialty medical practice soon or you are just planning for when that time comes, here is some valuable advice for you.
Valuing your California Speciality Medical Practice
The first step in selling any medical practice is to know the value of your business, but this can also be a valuable tool in your exit planning. At Rogerson Business Services, we do offer a tool that will help you determine your business value for free. While it is not a certified business valuation, it can give you a general feel for the process and the paperwork you will need to have to complete it.
When you are ready to sell, you will need a certified business valuation from a business broker who knows your industry and has a good finger on the pulse of the marketplace. This is the kind of valuation you will need so that your buyer can get financing if they need it, but it also helps you set the price you offer your business for.
To start a business valuation, you will need to gather your financial information from the last three years and make sure that it is accurate. Your business broker can also help you with “recasting” your books, a way for you to show the maximum income you can instead of showing the least tax liability as most medical practice owners do.
Once you have a business valuation, you can make better decisions about whether now is the time to sell, or whether you need to work to grow your medical practice before selling.
Unique Things About Selling a California Medical Practice
Selling a medical practice anywhere can be a bit tricky, but that is especially true in California. Even if a physician is licensed in another state already, if they are moving to California to purchase your medical practice, they will need to be certified by the Medical Board of California. This may mean some overlap where you work with the new owner until they are certified.
In addition, selling any business in California is unique. The escrow process is a required part of any business sale, and that makes the closing process a little more complicated. That’s where having the right business broker comes in: you’ll have a guide for the process who has been through it before and will help you know what to expect.
There is also the matter of your lease and the location where you operate. If you don’t own the real estate you occupy, you need to negotiate your lease ahead of the sale if possible, to make sure your landlord will work well with the new owner.
If you do own your property, you need to decide whether you will sell it as part of the business process, or if you will keep it and rent it to the new owner. There are pros and cons to both approaches, and your business broker can help you decide what will work best for you. They will help you base this decision on your tax situation and your plans for the future.
The issue of financing can also be an issue for businesses, and you have to determine if your potential buyer can afford to buy your medical practice, will need financing, and if you will need to carry some of that financing for them. This is another area where your business broker can help.
The Advantage of Specialization
Specialization is what makes your medical practice unique. It also makes it easier for you to vet buyers from the start. If a medical professional who wants to buy your business is not in your specialty or field, they will need to become certified or work with someone who is.
Specialty medical practices are often in demand from larger medical conglomerates or hospital groups looking to expand the services they offer to their patients, and this is often a great way to sell a medical practice. Your business broker can help you with the marketing process when it comes time to sell your business as well.
The Advantage of a Certified Business Broker
So why do you need a business broker? A certified business broker has experience selling all kinds of medical practices. They understand local laws, taxes, and other issues you will encounter when it is time to sell your business. They know how to keep the sale confidential while still finding the right buyer for you at the right time.
Certifications let you know that your business broker has been evaluated by professional organizations with high standards for both quality and integrity. You can be assured you will be represented in the most professional way possible.
Final Take
Selling your specialty medical practice in California doesn’t have to be difficult.
By following these four tips – understanding what buyers are looking for, knowing what they’re willing to pay, looking for buyers in the right places, and negotiating the best price – you can increase your chances of finding the right buyer and getting the best price for your medical practice.
Are you ready to sell or need some help deciding? Contact us today at this toll-free number (844) 414-9700 or simply email us at support@rogersonbusinessservices.com
Rogerson Business Services: Why Hire Their Expertise
Overall, by working with a qualified medical business broker during your sell-side process, you can feel confident that all aspects of selling your medical practice in California will be handled with care and expertise.
With their help, you will be able to sell your medical practice at top dollar. Here are some of the valuation tactics that Rogerson Busienss Services, expert brokers in California help you achieve your goal:
- How To Increase Company Valuation? 4 Value Drivers You Need To Know
- What is Quality of Earnings Analysis: Sell a Business Due Diligence in California
- Adjusted Financial Statements When Selling a Business in California
- SDE Adjustments To Make Before Selling a Business in California
- How Do I Calculate The Value Of My Business To Sell In California
- What is My Business Worth? | Valuing and Selling Your Business
- How Much is a Business Worth to Sell | Determine Business Worth
- Income Approach Valuation | Finding Business Worth Easy
- How To Value A Business Quickly: Best Business Valuation Formula
- Seller’s Discretionary Earnings (SDE) Valuation | Selling a Business in California
- Financial Due Diligence When Selling a Business
Do you have any questions about how to value a specialty medical practice? Leave a comment below and we’ll be happy to help!
Conclusion
If you are thinking about valuing and selling your specialty medical practice in California, then working with a medical broker is a great option. A medical business broker can help you get the best price for your medical practice by doing things like valuing your medical practice business correctly, finding the right buyer, and negotiating the best terms. If you are ready to sell your medical practice business, contact Rogerson Business Services today.
Andrew Rogerson is a certified business broker based in Sacramento, California. Call Toll-Free at (844) 414-9700 or email him at support@rogersonbusinessservices.com services the whole state of California.
This is part of the tips for Doctors wishing to sell their California medical practice and retire series ->
