Getting ready to sell your clinic whether it be a Physiotherapy, GP, Podiatry, Psychology, Chiropractic or other type of practice? Then it’s time to roll up your sleeves and get to work!
Selling a clinic, after all, entails a whole lot more than just planting a “simple 2-line ad” in your industry journal, especially if you’re angling for the most cash. (And, honestly, which practice owner isn’t?)
So, before you put your clinic on the market, peruse this checklist of things you must do in preparation. Some of these tips are surprisingly easy, while others might require a bit more elbow grease. But they’re bound to pay off once clinic buyers start oohing and ahhing over your practice and hopefully presenting a great offer for all that goodwill that you have worked to achieve for many years.
1. Find a great agent
Think you can sell your clinic yourself, and pocket the cash you would otherwise pay an agent? It can be tempting, especially as you know your industry, you may be a great Doctor, Specialist, Chiropractor, Physiotherapist, Psychologist, Podiatrist or Speech Pathologist but have you any idea what your goodwill (& equipment) are worth? Plus, how to find the right buyers, qualify them & negotiate with them? Probably not… Plus, have you the time???
That said, don’t just blindly hire any general agent, ideally you need an industry specific agent who is knowledgeable about your specific type of practice, who has sold many of these types of clinics before. At Healthcare practice sales we specialize in & ONLY sell medical & allied healthcare clinics – please make contact with us if you are planning to sell your clinic. You can also read some of our satisfied client testimonials here: https://www.healthcarepracticesales.com.au/client-testimonials/
2. Consider your look
Buyers do tend to judge a book by its cover. Do you have a practice website, is it up to date? What about your Facebook page? Have you got positive Google reviews? Having an online presence is an extremely important aspect of a clinic’s marketing plan. Any new owner wants to know that their practice can be easily found online.
3. Declutter the clinic
Less is more when it comes to an inspection by a prospective buyer.
Do a clean sweep of treatment rooms & reception, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards since virtually nothing is off-limits for curious buyers. If the clinic is overflowing with stuff get rid of what you have not used for years.
4. Depersonalize the clinic space
The next step on your clinic declutter list – You want to remove any distractions so the buyers can visualize themselves working in your practice. Remove personal items and family photos, as well as bold artwork and furniture that might make your clinic less appealing to the prospective buyers.
5. Repaint and other touch-ups
You may not need to do a full repainting project, but make sure the buyer feels that they can walk in & just start seeing patients & not have to do any work. Pay special attention to scrubbing and then touching up baseboards, walls, doors & clean or replace carpets to make the clinic sparkle and look cared-for.
7. The lease
A very important item on your pre-sale checklist, but often overlooked – Ensuring you have a secure lease in place plus option periods for further terms will provide peace of mind for the new owner & years of future security. Additionally, if you have any sub-leases in place please double check that they conform with conditions of the head lease and are legally transferrable.
8. Staff contracts
You need to have up to date contracts with all your reception & clinical staff to again provide security to the new owner that valuable staff will be retained after the sale.
Make sure all the clinic financials are in order as these will be scrutinized by the buyer & most likely their accountant. Work out your add-backs to show the buyer the true EBITDA of the practice & go back at least 3 financial years.
Get a solicitor in place to do the contract of sale when this will be required, choose one that has had experience in this area of clinic sales.
Looking to sell your clinic? At Healthcare Practice Sales we can assist you throughout the whole process from start to finish. Our service includes: valuing your goodwill & equipment, producing a professional sales prospectus, listing your clinic, sourcing buyers from our database as well as externally marketing it, plus external marketing, handling all buyer inquiries, negotiations on your behalf, to get you the best price in the fastest time; then once the letter of offer is signed we refer you to our solicitor who will complete your contract of sale.