You’ve made the decision to sell. But have you looked at your clinic/practice objectively (from a prospects point of view) and asked what it is that you are actually selling? It might sound silly, but unless you go through the following questions you might not really know.
What are prospects buying? The following questions will help you understand exactly what you are selling which is critical when determining the value of your practice.
Why are you selling? Prospects always ask this question. Reasons can be anything from retirement, pregnancy, relocation, new project. It doesn’t matter but be prepared for the question.
Does the practice/clinic rely on you? If your practice has a number of professionals and assistants, patients are going to be more accepting of you leaving as you are not the only person they see. This can affect goodwill considerably.
Is your practice/clinic profitable? And do you have evidence of that? Prospects are going to want to see a history of financial results with increasing trends in profitability, as well as income and expenses verified by your accountant.
Are you selling all your equipment? What is the equipment worth and when was it purchased?
Does your clinic have a marketing strategy? Do you have an effective website and social media strategy? This also adds to the value, as prospects will see that you connect with your patients and are easily found on the internet.
What about patient statistics? Do you have a broad patient base? Do your patients visit you regularly? How many active patients do you have?
Policies and Procedures. Do you have a practice management policy and procedure document? This document can be gold when selling your practice. Prospects can see you have a well-run, orderly practice and guidelines for when they take over.
Is your clinic nicely presented? Tidy up if necessary. Take out any personal items as these distract the buyer. Remove clutter.
Where is your practice/clinic located? Does it have street frontage? Is it easy to find? Does it have parking and wheelchair access?
Does your clinic have relationships? Relationships, and joint ventures with other allied professionals, sporting clubs, gyms are a positive sign of referrals.
Do you have a long lease agreement with option to renew? Prospects are unlikely to consider a healthcare practice purchase without favourable lease options.
What facilities do you have? Phone, electricity, HI Caps, EFTPOS, computers, internet, x-ray, air conditioning, bathrooms, kitchen. Go through your practice and right down all of the facilities.
Selling a healthcare practice as a going concern means you are selling a combination of all or some of the above. Once you have answered the above questions honestly you will have a good understanding of what you are selling.