How to Sell My Medical Practice for the Best Price?
How to Sell a Medical Practice for the Best Price
If you're a physician who owns a medical practice with multiple doctors, you may have enjoyed an enviable arrangement for a long time. As your business has grown, however, you may have found you have different priorities.
Perhaps the business has grown too big, and you are finding yourself more of a business manager than a physician. Maybe you're looking to retire or would like to explore a new opportunity entirely. Whatever the reason, when it's time to move on, you could have a lot of questions:
- How do I price my medical business?
- Should I sell my medical practice to a hospital?
- How will I find a buyer when I decide to sell my medical business?
- What do I need to know to sell my medical business fast?
- Will I be able to sell my medical practice at all?
We focus on selling large medical practices with multiple doctors that have annual revenues of $1,000,000 to $70 million. We have potential buyers for a variety of medical practices, including:
- Internal medicine
- Surgical Centers
- Urgent care
- Maternal-fetal medical practices
- Sleep care
Below are some tips to keep in mind if you want to get ready to sell a medical practice.
1. Convert to EHR
If you don't have all your patients logged digitally in an Electronic Health Records system, now is the time to convert to one. If you've had a practice for decades, paper charts have probably worked for you just fine, but your new owners want to access things easily. It could hurt your asking price if a buyer anticipates needing to convert to an EHR.
2. Get More Patients
If you're thinking about selling, you're probably looking to wind things down, but now is the time to ramp up. You want to show potential buyers you are selling a growing, profitable business — not one that is shrinking. After you sell, you can have as few patients as you want. Follow the steps below to get more patients:
- Improve your office space: Be sure to make a good first impression. Your office should be clean, attractive, and modern to welcome new and returning patients. Some inexpensive steps you can take to enhance your space are adding new paint, furnishings, or carpet.
- Enhance your online presence: Buyers are likely to find your practice via an internet search. A smart approach is to focus on incorporating some simple search engine optimization (SEO) features on your practice's business website. If you don't already have a business website for your practice, now is the time to set one up.
Once you complete the sale, notify your patients that your practice is being sold. The sale could affect how your patients' medical records are transferred after the sale. To comply with licensing requirements, the terms of the Asset Purchase Agreement, and professional and ethical standards, you should notify and advise your patients of the transfer.
3. Value Your Medical Practice
You need to value your medical practice before you sell. How your business is valued depends on a few factors, including what type of medical practice it is. At Synergy Business Brokers, our database of potential buyers is interested in:
- Walk-in clinics
- General practitioners
- General diagnosticians
- Adult internal medicine
- Virtual medical services
- Primary care physicians
- Family medical practices
- Nurse practitioner offices
- Pediatric internal medicine doctors
- Cardiologist specialists
- Genomic research
- and more
One of the key elements to consider in your valuation is your owner's net income. Typically, a practice is valued off a multiple of your net income (including your salary and benefits), and practices that have a large number of doctors can usually use higher multiples to calculate value.
Valuators and medical practice business brokers can be effective partners when you need to value your practice. Professional medical practice brokers can go a long way toward getting you a fast sale and a great price on your medical business. When you work with a broker, you'll be able to give a reliable estimate to buyers on how much your company is worth and have access to great advice and motivated buyers.
4. Find Your Buyer
At Synergy Business Brokers, we have a database of more than 30,000 potential buyers that may be interested in purchasing your medical practice. Buyers that may be interested in your practice include:
- Affluent doctors
- Private equity firms
- Large medical practices
- Public healthcare companies
There are pros and cons to each type of buyer. Hospitals, for example, are top acquirers of medical practices, but they often end up offering lower payments. Private equity groups may pay top dollar for some specialties, but they are especially selective. Individual doctors can be good, but you need to make sure they have the financing in place.
This is why so many practitioners looking to sell their practices turn to a broker for assistance to help them to navigate their options. Partner with a broker from Synergy Business Brokers to sell your medical practice for the best price.
5. Stay on Board
You may need to stick around for a while to entice buyers. There's a good chance that you are the heart of this business and that many of the patients came to your practice because of you.
Buyers don't want to have to worry that as soon as they buy your business and you retire, your patients will no longer be loyal to the practice. If you agree to stay on for six months or a year to ease the transition, it could help seal the deal.
Sell Your Medical Business Online Confidentially With Synergy Business Brokers
Medical businesses in New York, Florida, Illinois, New Jersey, Texas, Connecticut, Massachusetts, Pennsylvania, Louisiana, and throughout the Eastern United States and beyond know that Synergy Business Brokers is your perfect partner for selling a medical practice.
When you're trying to get a great price and a quick sale on your physician practice, turn to us at Synergy Business Brokers. We have specific knowledge of the medical business market that we can put to work for you right now, and we only get paid once you make a sale, so you have nothing to lose.
If your practice's annual revenue is between $1,000,000 and $70 million and a net income between $250,000 and $10 million, you can get started online right now. Just submit this simple form for a confidential consultation or call us at 888-750-5950.