Issues to Look Into When Selling a Medical Practice Over the last two decades most physicians who worked in small medical practices and were owners of the same practice are nowadays selling their practices either on a solo basis as a group or they are merging with other practices so that they can counter issues like reducing reimbursements, rising costs of operation and a critical shortage of the available physicians. A known fact is that when it comes to selling a practice, there are certain factors to consider and experience indicates that there are just three scenarios that can lead to the sale of practice and one of them is the fact that an independent physician is about to retire and thus they have to close up. Another scenario is that the medical practice must address issues that they cannot easily overcome via other routes and the other scenario is that the physician or physicians would just like to liberate themselves from the managerial problems that come with running a business. The physician has to take note of a few things before they even consider selling their practice, one of these things is the ameliorating of the books, and this task includes the energy that is required to keep profits steady or increase them for some years before considering selling the practice. The physician has to perform some bookkeeping skills such as: removal of personal expenses from the practice, put the financial statements in order and seek the services of a business valuer and a broker that will aid the doctor identify the strengths and weaknesses in the overall financial position of the practice so that they can prepare a defense early in advance and take the needed steps to handle the situation.
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The physician needs to consider the level of involvement with the practice after the sale and they need to make a choice as to whether they will still work with the practice and if they would like to work in the practice then they need to be specific on aspects like hours, the responsibilities that they would take, the pay structure and what the chain of command would be in regard to them.
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The doctor selling also needs to set a price that is realistic and they need to note the fact that some of the medical equipment that they are using cannot be resold and the value of intangible assets may be a bit vague to value. In most instances the doctor may see a higher value because of good will and the client relationships that he has created over the years unlike the potential buyers and that is why the seller needs a business broker that has experience in handling such kinds of deals to help in ascertaining the value of the practice and setting a realistic value.