Right time to sell a medical practice?
The story of a man
You may have read the feature in the San Francisco Chronicle last month about 93-year-old Dr. James Hutchinson who’s still practicing and caring for three generations of patients in the same San Mateo practice he opened 63 years ago. He came to California in 1946 to visit a relative who encouraged him to apply for a job at the Sacramento County Hospital after graduating from medical school back east. When Hutchinson was asked if he ever imagined he’d be practicing this long, he replied: “I sort of thought I would.” He never knew what the right time to sell a medical practice was.
While Dr. Hutchinson’s long and successful practice is a great achievement, other medical practitioners want to call it a career and move on a little earlier than their 93rd birthday. Those that want to retire or simply sell their existing practice should seek the assistance of an experienced business intermediary.
Is this the right time to sell a medical practice?
A business intermediary can help with the complexities involved with a medical practice sale. For example, you need to prepare for a sale, and a large element of that process is a recent valuation of your practice. A business valuation is simply a process that’s applied to determine what your medical practice is worth. Although it may sound like it’s just a quick phone call to accomplish this, you’ll need to spend some time preparing for this process. That one of the reasons to work with a professional with experience selling medical practices in the Sacramento region.
In addition, you and your intermediary will need to address any issues regarding the termination or transfer of your lease. You’ll also need to deal with your staff, your mortgage or the terms of the existing lease, the transition of your patients to a new medical practice and the transfer of medical records, and the list of assets to be included with the practice.
Add to this, a review of whether your office and operations systems are up to date, as well as your equipment and technology.
You also need to address your obligations to other practitioners and investors and determine if the business name will be discontinued.
Ask an expert
Start your preparations and get expert advice on determining your practice’s value and the optimal selling price—because the price depends to a great extent on how the business sale is handled. You want a well-conducted business marketing campaign for a successful sale at the best price, not fire sale.
Work with an experienced business intermediary who can help you with all of these concerns. Andrew Rogerson is a business expert and has negotiated hundreds of medical practice sales in cities throughout the Sacramento Region. Although he’s not expecting a call from Dr. Hutchinson any time soon to sell his doctor’s office, he has helped numerous other physicians sell in Rocklin, Folsom, Citrus Heights, Rancho Cordova, Elk Grove, Davis, El Dorado Hills, Roseville, and Cameron Park.
Spend some time talking with professional business intermediary Andrew Rogerson. He knows about medical practice sales and complex business transactions in the Sacramento area. Please visit our website Services. You can also get in contact with Andrew via email or call him at (916) 570-2674.