Every practice owner wants top dollar when it comes to selling their clinic, especially after putting in many hard years of blood, sweat and tears to create a large patient data base, referral relationships, strong weekly patient numbers, a waiting list for new patients and so on.
Considering the clinic owner has often made a significant investment to achieve growth and success in their clinic over many years of course they want a great price when selling.
But the value a potential buyer who wants to purchase a healthcare clinic places on a clinic can vary quite significantly from the vendor’s expectations.
In the current healthcare environment, clinic buyers are more risk averse than ever before and this is being reflected in increasingly rigorous due diligence that can last not days, but weeks & even months.
How, therefore, as a practice seller, can you ensure you’re maximising the potential value of your clinic, particularly in this market?
There are several key areas at Healthcare Practice Sales that we have identified during the sale process where, depending on how it’s handled, the value of the clinic can be significantly eroded or maximised. They are:
- Preparing your clinic for sale is ‘key’. Have it looking the best it can be. Have all your staff contracts in place. Get your secure lease sorted. Make sure the clinic is performing well & not dropping like a stone. Have up to date Policies & Procedure manuals in place. Leave no stone unturned. A lack of clarity for the potential new clinic owner is a red flag to future problems or growth constraints which can scare off potential buyers or, at the very least, cause them to lower their offer price.
- Poor quality of information will also affect a clinic buyer’s perceived value of the clinic. Incomplete, inconsistent, unreliable, unexplained and unsubstantiated records are a sure way to a lower offer price. At Healthcare Practice Sales we work very hard with our sellers to ensure what we provide potential buyers is complete, of high quality & true.
Buyer due diligence
- The due diligence phase can be a time of potential price adjustments from inquiring parties. Vendors who are not prepared for the likely buyer queries that arise at this stage are doing themselves a major disservice. At Healthcare Practice Sales we work closely with our clinic sellers in the early stages to make sure we have just about every question answered before it is asked.
- Values can fall at the final hurdle so having an experienced advisor in your corner to close the deal is vital. Healthcare Practice Sales has 7 plus years’ experience when it comes to selling a Physiotherapy clinic, Podiatry clinic, Chiropractic clinic, Osteopathy clinic, Speech Pathology clinic, Occupational Therapy clinic, GP clinic or other healthcare clinic. So we can get you the best deal in the shortest time frame.