Medical Business Brokers & Medical Practice Sales

The two factors that affect the timeframe the most are the ability or preparation of the buyer to obtain or have pre obtained finance to complete a transaction and the in house preparation of the seller to have all documentation ready and in order for a swift due diligence assessment. A targeted timeframe for completion from the time of offer acceptance is approximately 10 weeks however this can vary depending on the above factors.

Typically, most business owners have high regard and concern for the ongoing employment prospects of their staff. There are no set rules when it comes to incumbent staff remaining in their existing roles. If it is of primary concern to sellers, then it can be a key point in vetting for potential buyers. We do find however that in almost all our medical practice sales that incumbent staff are retained however this is never a condition.

If you have stock for sale with your business, the value of such is normally undertaken on the day before completion. As stock volume and value can changes from the time of offer to the time of settlement, the Stock At Value (SAV) is added onto the agreed sale price at settlement in businesses where they may be a large stock component.

This is really up to you as the seller and one of the reasons why using an experience brokerage firm is useful. Depending on the nature of the purchaser or the demands of the seller, practitioners may sell on a Walk in Walk Out ( WIWO ) basis with the new practitioner taking over after a short hand over and orientation period.  Some purchasers however, might want to negotiate into the sale that the selling practitioner remains with the business for a specified timeframe.  As a seller you may also want to remain in the practice but just be relieved of the management and ownership. We have extensive experience in these negotiations for your clients. The more flexible you are as a seller in this regard, the greater your chances of opening your business up to sale to a range of prospective purchasers. If the business and billings critically rely on you as a practitioner, it become more important.

Medical Business Brokers will discuss a marketing plan with you at the time of listing. There are a range of options from internet and professional journals to direct marketing to our database of prospective buyers and liaison with our corporate contacts. In many instances, we can attract buyers with minimal marketing using our internal contacts. Discussed in the marketing plan will be our protection of your confidentiality as appropriate. We have a database that has been building constantly since 2014.

Typically, the process evolves through various stages as below

• initial meeting
• business appraisal
• contract for listing – an executed contract between us and you outlining the agreed terms of sale
• information memorandum and business preparation for sale
• marketing and buyer attraction
• vetting of interested buyers including execution of confidentiality agreements and financial assessment
• offer negotiation to acceptance
• deposit payment – held in trust by Medical Business Brokers
• due diligence
• preparation and agreement on a sales contract
• valuation of stock
• settlement / completion

For larger sales where due diligence and the drafting of a contract is needed, then it is usual to engage the services of experienced professionals. We can suggest experienced commercial lawyers who can provide support at a sensible cost to sellers. However this is the last step in the process. To save on your costs, we like to have the negotiations and terms complete to then pass to the lawyer to draft a contract.