In the previous months’ articles on Selling Your Practice, we discussed why so many physicians are selling their practices. We counseled you to continue to run and grow your practice, to prepare early, and to assemble a team of experts.
We then suggested you begin to educate yourself by learning the difference between the two most common type of transactions—a capital sale and an asset sale. We discussed the need to complete an objective analysis of your practice, and to develop a financial pro forma.
Then, we covered the need to prepare for negotiation by understanding what you want from a sale of your practice, and the need to determine its value. We turned our focus toward identifying potential buyers, and performing your own initial due diligence on potential buyers before putting your practice up for sale. Last month, we discussed the development of a confidential information memorandum (CIM), approaching potential acquirers, and signing non-disclosure agreements.