Selling Your Medical Practice?
Medical Business Brokers specialises in the sale and divestment of businesses and practices across Australia. Our acquisition team are licensed and registered brokers with experience in appraisals, marketing strategy, contracts and settlements of businesses. We extend our services to the areas of Family Medicine – General Practice, Radiology Practices, Dental Surgeries, Optometry Practices, Physiotherapy Practices, Chiropractic Practices, Podiatry Practices and a range of Allied Health disciplines such as Speech Therapy and Occupational Rehabilitation businesses. We specialise in practice sales in the valuation range of $250,000 to $5M.
We offer an end to end service commencing with a market appraisal and an open and constructive discussion regarding current market conditions, prospective buyers, sale time completion scales, contracts for listing and sale, stock assessment, exchange, trust accounting and settlement arrangements. We work closely with the lawyers and accountants from both the vendor and purchaser sides guiding through due diligence formalities and working to bring the business sale to fruition within a reasonable timescale. If you are considering selling your medical practice then we enoucrage you to contact us for a confidential discussion.
WHY USE US?
We are licensed and registered business agents that sell only businesses. Our firm does not extend to real estate sales or property assets as few prefer to focus expertise on the task of selling businesses only. While there are many reasons why a business owner should use a broker for the sale of their business, there are two key reasons that are critical.
It can take many months to sell a business, sometimes up to or more than 12 months, depending on the location, practice performance, economic uncertainty or willingness of banks to finance purchasers. Business owners who get caught up in the sale process, marketing and engagement of purchasers can take their eyes off the business, this can often lead to a downturn in productivity which unfairly might reflect in the profits and hence valuation of the practice. When a practice is listed for sale, everything should be in place to see that it is performing at its peak so as to impress prospective purchasers. The business owner should be more engaged that ever in increasing profits and revenue so as to increase their chances of sale.
This is paramount to any business owner selling a practice. Engaging a broker can ensure that the listing and management of the sale of your practice remains confidential. It’s important that your local competition, the public and most importantly your key staff are not aware of or distracted by a listing or sales process in most cases. The loss of patients or key staff who might seek alternative sites of treatment or employment if concerned about a practice for sale can damage a business very quickly and hence the prospects for sale if the business is on the market for some time and sees falling revenues and staff turnover. Below are some key points about the sale process and what Medical Business Brokers can offer.
The Process of selling your Medical Business
Listing of Business
When engaging us at Medical Business Brokers to list your practice for sale, you will be asked to execute and enter into a Sales Listing Agreement, this is mandatory under the Business Agents Act. This agreement will have a stipulated agreed timeframe as well as defining the agreed prospective sales price, marketing strategy and sales completion costs and commissions. It is stipulated by law, that a Registered Brokerage Agency cannot list a business for sale until such time as a contract between both parties has been executed. As the vendor, you will be provided with a copy of Sale Listing Agreement. At the time of listing, our firm will charge a Listing Fee that covers our labour and costs for our internal listing processes and arrangements. A marketing strategy will also be discussed and agreed upon. The Listing Fee, is refunded to the Vendor at the time of sale.
Upon execution of the Sales Listing Agreement, our firm will work closely with you to collate all necessary documentation of both financial and informative nature to be used in the listing and sales process of your medical business. We will cover off preparation for due diligence, marketing strategy, prospective purchase entities as well as our internal processes of collating and preparing information memorandums and financial / business reports for prospective purchasers.
Identifying The Purchasing Entity
During the course of a business listing, our team seeks out and vets all prospective buyers. All prospective purchasers are asked to execute a Confidentiality Agreement prior to the disclosure or dissemination of any information regarding the practice for sale. Our firm also asks for financial credentials from the prospective purchasers where possible to ensure that they have the finance or approved finance to complete a sale transaction. Only after these two points have been determined is the business for sale “opened up” for the prospective purchaser to view. Our firm will keep in close contact with you, the seller, throughout this process.
We have extensive experience in due diligence operations and can provide advice to the vendor regarding preparation for the due diligence exercise. The due diligence process is the most important part of the transaction for both the purchaser and seller. It is imperative that the seller has their business in order from a financial and commercial documentation standpoint in order for the sale process to proceed smoothly and without delay. We can provide checklists of commonly requested documentation for the vendor to prepare in advance. A poorly presented business at the due diligence stage is a leading factor in prospective purchasers withdrawing from sale completion. For larger commercial transactions, it is not uncommon that either side may with to engage a lawyer and / or an accountant during this process.
Completion / Settlement
Upon completion of due diligence, a Sale Agreement is executed and exchanged between both parties and financial settlement occurs. For larger commercial transactions it is not uncommon for the vendor to engage a lawyer with commercial transaction experience to draft an SPA (Sale / Purchase Agreement). This document not only covers the financial details of settlement but often extends to cover Warranties for both the Vendor and Purchaser as well as other items such a trade restraints, brand restraints and a detailed list of assets and intellectual property that is included in the sale.
LOOKING TO BUY OR SELL A MEDICAL BUSINESS?
Our website contains just a selection of our businesses for sale, contact us if you are looking to buy or sell a Medical Business.
Call 1300 508 292 or email us today!