Immediate Take Home Value:
Get the requisite knowledge to determine whether buying an existing practice rather than starting from scratch is the best strategic and financial fit. This issue will be presented in detail and includes 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.
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.
Learning Objectives and Content
1.Evaluate the multifaceted specific criteria and documents required to determine the realistic acquisition price of an existing practice. Included is a discussion of EBITDA and Adjusted EBITDA, review of goodwill and other intangibles, how to objectively evaluate the practice’s position in the market place and the inherent value makers versus value takers
2. Distinguish if a purchase is the best strategic and conceptual fit for your clinical skill set, personality and life style. Structuring as an asset or stock sale, a merger or an acquisition, how to analyze if a seller’s relationship with referral sources and patients can realistically be transferred, what to research in tax and legal documents, how to evaluate the potential of the practice vs. the financial risk, market
analysis of proposed catchment area and current patient statistics.
3. Strategies on approaching a prospective practice about a sale.
4. Formulate expectations and a plan of action for a seamless transition and success post sale. Purchase agreements, specific terms of the sale, financing options, employment agreements including non compete clauses. Establishment of a transition plan to retain patients and build in success.