What is my medical practice worth?
Many factors determine the worth of your medical practice. The best way to find out what your medical practice is worth is to speak with a professional specializing in selling medical practices. They will have experience working with doctors like you and access to the tools that provide an accurate valuation.
If you are veterinarian looking to valuate your clinic, review our recent blog post here
How do I get the maximum value for my medical practice for retirement?
It starts with knowing what your practice is worth. Then, solid preparations, amplified by great negotiation skills and supported by a team of experts, will help you get there.
What is needed to sell my medical practice?
For a successful sale, you will also need a clear picture of what you want and how much you are willing to compromise. You will also need to have a good understanding of the market value of your practice. You must know where you want to be in the near future to make decisions based on this knowledge.
If your goal is to retire early, then an exit strategy is crucial. If you want more control over the process but do not have enough time or resources, then hiring an advisor or an expert in selling medical practice may be helpful.
How long will it take to sell my medical practice?
It’s hard to say, but as a rule of thumb, it takes between six to nine months to find a new buyer, or it can take as long as a year. If you are looking for a quick sale at the top dollar you can contact us today. Our Transitions Elite Selling Process™ is a unique formula that positions your practice for the best buyers in the market.
How long ahead of time should I start the sale process of my medical practice?
The best time to start the sales process is when you have determined it is a good opportunity. However, it is important to remember that the longer you wait before starting the sales process, the more difficult it will be. The faster you plan, the better you can assess your business, its needs, and strength, which would contribute to a successful sale. The earlier you start, the better.
What will happen to my long-term and most loyal staff after the sale of my medical practice?
Your long-term and most loyal staff will remain with the practice, and their terms and conditions of employment will remain in effect- this is what happens in most cases to ensure a smooth transition. However, if you want to make sure that your staff is happy about the future of their careers, then it is important to discuss this with them before selling your medical practice. If you have any questions about the process, don’t hesitate to get in touch with us.
After Sale FAQ’s
How long do I have to stick around after the sale of my medical practice?
The sale of a medical practice is a complicated transaction. It will take time for all parties to wrap up the deal and finalize the sale properly. You must also keep in mind that the possibility exists that new buyers might want you to stay back in a consulting role, full-time or part time, depending on what you agree to, of course. The main reason is that the new owners want to ensure hassle-free continuity and less employee turn-over. If they have strong concerns (or evidence) that your departure would affect business, they would likely try to beat down your asking price to counteract the risk.
Can I still practice medicine at the clinic after the sale?
Yes, you can practice medicine at the clinic. The sale is not a termination of your employment, and you will continue to be employed by the clinic.
What are the Tax consequences of Buying and Selling a Medical Practice?
The vast majority of sales are asset sales and not stock sales. If you sell your entity (stock sales) in a physician practice, you will pay a long-term capital gains rate than the ordinary income tax rate. Right now, the rates are between 15-23.8% for federal long-term capital gains taxes, while ordinary income is taxed at 10%-39.6%.
When you sell your practice in an asset sale, you will pay taxes on the value of the assets at ordinary income tax rates. But most of the value in medical practice sales lies in goodwill taxed at long-term capital gains rates.
What changes medically? What changes operationally?
In most cases, the only thing that will change medically is the patient’s symptoms or diagnosis(hopefully, for good). Operational changes would depend on the focus of the new owner. Irrespective, changes won’t be knee-jerk but rather well thought out, if any.
What operational functions does your group take over?
We take over the selling process, including attracting the right buyer, negotiating the best possible value, and closing the sale transaction. Additionally, we would assist you in transitioning from your medical practice to a new owner, ensuring that all aspects of your practice are handled properly and that all necessary steps are taken to ensure a sweat less transition.
What does the transition period look like? How long is it?
We will be working with you to transition your medical practice over a period of few weeks to up to few months, depending on the type of practice and other contingencies.
When do we tell our doctors and key staff members? How do you suggest we do so?
If you are selling a group practice, you may want to inform your physicians before any public announcement. This way, they can prepare themselves, and it will give them time to look for other employment if they choose.
Secondly, it is imperative that you have a transition plan in place with your doctors, key staff members, and patients. The best way to start the conversation is to set up a meeting with them and explain your thoughts, concerns, and future plan. The more information they have about your transition, the better they can prepare for it.
After you get their buy-in, then it’s time to tell your staff. You can do this in person or via email/phone call/text message. The key is to let them know what’s happening and why and how they can help you during this transition phase. For example: “ We are selling our medical practice because we feel this will be best for our family and patients.” Then explain how they fit into the mix. “We need someone who can help us transition smoothly until all our patients are transferred.”
When and how do we tell the rest of the team?
There are no hard and fast rules about when to inform your staff; we recommend you give them advance notice so they can plan for the transition.
Well, we can help!
At Transition Elite, our team of experts will work closely with you throughout the process. We will handle everything, including marketing and negotiations, in a way that brings only qualified buyers to the table. No hassles-selling faster and easier means you enjoy the next phase of your life sooner – no matter where that may lead.