Provided by: Jennifer Kirschenbaum, Esq.
February 27, 2020
Question:
Jennifer,
I am looking to sell my practice, but I'm not ready to retire. Any tips?
Thanks in advance.
Dr. L
Answer:
I love this question. So many of my doctors only worry about the purchase price, and do not spend any time thinking of day 1 post-sale, or day 90 post-sale. Your quality of life and options post-transaction should be a top concern. If you are not ready to retire yet then who you choose to sell to is a top priority concern. Are you selling to a competitor or investor looking to expand and you are a key person to them post-sale? They need you to stay and work, and you are willing to do so? Or, are you selling to a practicing doctor looking to be busier or leave associate-ship to take their own reins, and you will likely not be needed? These considerations are so important to a preferred post-sale quality of life.
The best thing you can do as you prepare for the sale process is to be honest with yourself and manage expectations. If you want to keep your parking spot, staff, EMR, routine, etc., then these details and your tenure must be negotiated from the start. Do not think you can sign a term sheet with a 3 month post-close term, and a 10 mile non compete and you will somehow "turn this one around" before we close on a contract. State intentions up front, and do not compromise when it comes to quality of life.
Even if you are not quite ready to sell, its probably time for us to touch base. The sale process actually starts when that seed gets planted and starts to grow as an idea in the back of your head 3-5 years before you actually sign and turn over the keys. We can take steps now to best position you to maximize value and quality of life.
Jennifer,
I am looking to sell my practice, but I'm not ready to retire. Any tips?
Thanks in advance.
Dr. L
Answer:
I love this question. So many of my doctors only worry about the purchase price, and do not spend any time thinking of day 1 post-sale, or day 90 post-sale. Your quality of life and options post-transaction should be a top concern. If you are not ready to retire yet then who you choose to sell to is a top priority concern. Are you selling to a competitor or investor looking to expand and you are a key person to them post-sale? They need you to stay and work, and you are willing to do so? Or, are you selling to a practicing doctor looking to be busier or leave associate-ship to take their own reins, and you will likely not be needed? These considerations are so important to a preferred post-sale quality of life.
The best thing you can do as you prepare for the sale process is to be honest with yourself and manage expectations. If you want to keep your parking spot, staff, EMR, routine, etc., then these details and your tenure must be negotiated from the start. Do not think you can sign a term sheet with a 3 month post-close term, and a 10 mile non compete and you will somehow "turn this one around" before we close on a contract. State intentions up front, and do not compromise when it comes to quality of life.
Even if you are not quite ready to sell, its probably time for us to touch base. The sale process actually starts when that seed gets planted and starts to grow as an idea in the back of your head 3-5 years before you actually sign and turn over the keys. We can take steps now to best position you to maximize value and quality of life.
