This webinar was given live and recorded – the recording includes all the Q/A from the therapists who attended.
Therapists considering the options of starting a new private practice, or opening a second location may want to explore whether it makes more sense to start from scratch or buy an existing practice. This second option is becoming more apparent as consolidations continue in healthcare, and a generation of private practice owners become baby boomers, and look to “pass the torch” to the next generation of therapists. Buying a practice is a significant investment requiring both introspection and evaluation. Multi faceted issues go into this decision, reaching well beyond the ask price of the current owner. Regardless of the practice size, due diligence and exploration of how best to structure the deal for both parties is required along with a three pronged approach to discussions, agreements and negotiations.
Besides buying a home, the purchase of a practice is likely the most expensive made in a lifetime and your professional livelihood can be significantly affected if you overpay or do not fully understand what you are purchasing. In the ideal scenario, there are no surprises once you own the practice because you have done the necessary homework. “Caveat emptor” (let the buyer beware) should be the guide for the transaction.
Immediate Take Home Value
The goal of this session is to give therapists the tools and requisite knowledge to determine whether buying an existing practice rather than starting from scratch is the best strategic and financial fit for them. This issue will be presented in detail and include what would be required to request, research and investigate during the essential due diligence period in order to make an informed decision, and have a successful post sale transition.
Learning Objectives and Content – Upon Completion of the course you can expect to:
1.Evaluate the multifaceted specific criteria and documents required and used to determine the realistic acquisition price of an existing practice:
-Discussion of EBITDA and Adjusted EBITDA along with less common valuation formulas
– Review of what encompasses goodwill and other intangibles
-Review of how to objectively evaluate the position of the practice in the market place and
what are the inherent value makers versus value takers in the practice
2. Distinguish if a purchase is the best strategic and conceptual fit for your clinical skill set, personality and life style:
-How to determine whether a sale should be structured as an asset or stock sale, a merger or an acquisition
-How to analyze whether the seller’s relationship with referral sources and patients can realistically be
– What to look for and research as part of the due diligence in tax and legal documents
-How to evaluate the potential of the practice versus the financial risk, market analysis of proposed
catchment area and current patient statistics. How to approach a prospective practice about a sale.
3. Formulate expectations and a plan of action for a seamless transition and success post sale.
-In depth discussion of legal components include purchase agreements, specific terms of the sale
including financing options, employment agreements including non compete clauses.
-Establishment of a transition plan to retain patients and build in success
Upon completion, therapists can take a post webinar quiz and get a certificate of completion for 1.5 contact hours.