Here’s an outline that determines your transition needs when selling your practice independently. This guide will help you navigate the complexities of the sale process.

How to determine if and when to sell.

Step 1: Should You Sell?

• Determine your goals and assess if selling is the best option.
• Explore alternatives such as adding an associate or considering a walk-away versus a pre-sale strategy.
• Consider post-sale factors and their impact on your decision.

Step 2: Financial Considerations

• Assess the value of your practice, including equipment, furniture, supplies, and intangible assets.
• Write a practice evaluation and establish a purchase price with appropriate down payments and financing terms.
• Prepare a 10-year financial projection covering working capital, installment payments, inflation, and both current and future production.

Step 3: Locating the Purchaser

• Advertise and write blind ads to attract potential buyers.
• Contact senior students and recent graduates, and explore practice merger options.
• Screen applicants, conduct interviews, and maintain confidentiality throughout the process.

Step 4: Banking and Seller Considerations

• Prepare the purchaser for bank interactions, including financial statements and income projections.
• Secure a co-signer if necessary and manage seller loan subordination requests.
• Coordinate the bank loan closing with the practice closing.

Step 5: Working With Attorneys and Accountants

• Collaborate effectively with both your attorney and the purchaser’s attorney to address all legal matters.
• Manage communication and expectations with your accountant and the purchaser’s accountant.
• Control legal and accounting fees to ensure they do not exceed your selling price.

Step 6: Contract Considerations

• Draft a comprehensive contract covering asset sales, purchase price allocation, title considerations, and other key elements.
• Include terms for patient care, restrictive covenants, tax considerations, and post-sale communication.
• Address security interests, default terms, and arbitration clauses.

Step 7: Closing the Sale

• Handle last-minute negotiations and ensure all parties agree to final changes.
• Manage any disputes with fairness and ensure the attorneys are aligned on changes.

Step 8: After the Sale

• Communicate with the purchaser post-sale and handle any legal issues or disputes.
• Consider legal counsel for potential lawsuits and manage your personal transition.

If further interested, Legacy Practice Transitions offers confidential consultations to guide you through each step of the process. Please let us know how we can help. You can also email us or call us at 800-334-9126.