You worked hard to build your chiropractic practice, but now it’s time to make a change.
A chiropractor may sell their business as part of the transition to retirement or partial retirement.
Or, you might sell your current practice in order to relocate elsewhere. Sales also occur for a variety of business reasons, such as choosing to bring in a new owner who has more capital to sustain or build the business.
Selling your practice can lead to a wide range of financial outcomes, so it’s important to be strategic and thorough as you navigate the process.
Ready to sell, but not sure where to start? Here are the key steps to take in order to effectively approach and complete the sale of your chiropractic practice.
Examine Your Financials
Begin your preparation for a sale by examining your financial records. Preferably, you’ll perform this process with the help of a financial advisor or business coach. Assemble all of your business’s key financial data, such as current debts, payroll expenses, and tax details.
If possible, make a plan to pay off any outstanding debts before negotiating a sale. Alternatively, plan to allocate funds from the sale to quickly settle your debts after the transaction is final.
Valuate Your Practice
In order to market your practice and negotiate from an informed standing, you need to know the value of your practice. A business’s value is derived from the analysis of factors such as existing assets, projected revenues, and outstanding debts and liabilities.
To acquire an accurate valuation, work with an appraiser who specializes in commercial properties. You may also want to work with an accountant who can value the business, then separately work with an appraiser who values the physical premises of your office.
During the valuation process, pay attention to any structural issues that lower the value of your office building. Consider investing in repairs before pursuing a sale in order to make the practice more appealing to buyers.
Prepare Your Legal Documents
Along with your financial documents and your valuation paperwork, gather all of the legal documents that have been formed concerning your practice. These may include tax records, business licenses, lease agreements, and insurance policies.
Inform Your Staff of Your Intent to Sell
After making the decision to pursue a sale, inform your staff as soon as possible. They should hear the news directly from you.
Let your employees know that you plan on selling the practice but that you will take great care to find a qualified and compassionate new owner. Assure your staff that you’re considering their job security as much as possible. Be transparent about the sale timeline so that they can make whatever arrangements they see fit regarding their own professional futures.
Find the Right Buyer
When you’re ready to find a buyer, work with a real estate broker who has experience in medical practice transactions. Your realtor will use their skills and resources to connect you with as many high-quality candidates as possible.
Once you’ve connected with the right buyer, your realtor will help you negotiate a sale price and execute the sale transaction.
Train the New Owner
As part of your arrangement with the new owner, schedule a training period. This may involve several weeks of co-running the practice before or after the sale. Be sure to put the terms of this arrangement in writing.
Notify Your Patients
Once your sale is finalized, you’ll want to communicate the news to your patients. Let them know that the practice will be overseen by a new chiropractor and that they should expect the same great quality of care that they’re used to from the new owner.
If you plan on continuing to practice in a different location, then you may be able to notify your patients of when and where they can keep receiving treatment from you. If you plan on retaining patients, then the terms of any communications you send to existing patients should be worked out beforehand with the new owners of your prior practice.
Planning a Sale, Merger, or Acquisition? Get Expert Career Coaching from AMC
At Aligned Mentoring for Chiropractors, we equip chiropractors with tailored coaching and resources that promote success during any career stage. Whether you’re just getting started or rapidly approaching retirement, we provide personalized mentoring and exclusive ancillary resources that empower your professional and financial progress.
To learn more, contact AMC today to book a no-pressure, no-tactic consultation with our team of chiropractic industry experts.