Buying a healthcare practice or clinic is a big decision. Buyers or Prospects will need to do their due diligence. Below are some reasons why they say no.
- Some buyers may not have articulated in their head what exactly they are looking for and spend months looking around until they find the “right one”.
- It doesn’t feel right. It’s pretty hard to address this one. It’s a very personal thing. For whatever reason, the buyer has not connected to your practice.
- They don’t like the clinic, at the end of the day, purchasing a clinic is a big decision and if the practice management style doesn’t suit them, they will say no.
- Perhaps you’ve carved out a niche market for yourself. If the buyer feels they can’t fit that niche, or use a different method or technique they will say no.
- You’ve figures don’t add up. If your patient statistics or financial data is misleading or doesn’t make sense, prospects will be sent running as they will suspect creative accounting.
- Bad timing. Life in general often throws us curve balls. It could be that it is simply not the right time for a particular prospect.
- You will have an asking price in mind, the prospect will have a budget – they don’t always meet. Ensure your asking price has some negotiating room. If the asking price is unrealistic, buyers won’t go any further.
- Market trends with particular healthcare fields can affect prospects. If the market is showing a downward trend it may make them nervous.
- Political unrest can lead to prospects saying no for now. i.e. the lead up to an election can make buyers hold off making decisions, especially if there are major political policy changes being made. For instance, changes to stamp duty or banking reforms.
- Issues with goodwill. The buyers may say no, if they suspect the goodwill will decline rapidly after the vendor leaves the clinic.
- Branding condition of the clinic. If you’re signage is unclear, or old and in need of repair. Shoddy paperwork, dog eared paperwork. If rebranding is required this can also be a put off, as there are costs and risks involved if not managed correctly.
- Lack of finance. If the buyer has not been successful in obtaining finance. Not a lot you can do here other than wait for a more cashed up buyer.
If you need some no-obligation advice on either buying or selling a Healthcare Practice or clinic, don’t hesitate to contact us.