Preparing Your Plastic Surgery Practice for Sale: A Comprehensive 9-Step Guide
Selling a plastic surgery practice is a significant and multifaceted decision. The process can be complex, but with careful preparation, you can achieve a successful sale. This guide outlines nine essential steps to help you navigate the process effectively.
- Define Your Objectives: Understanding why you want to sell is crucial. Whether your goals are to maximize profit, ensure the continuity of care for your patients, or transition smoothly into retirement, clarifying your objectives will guide your decisions throughout the sale process.
- Prepare Emotionally: Selling a practice you’ve built is inherently emotional. It’s important to recognize and prepare for this aspect of the process. Plan for your team’s transition and consider your post-sale future. Seek support if needed to manage the emotional challenges involved.
- Organize Financial Records: Prospective buyers will closely examine your financial history. Ensure that you have at least three years of organized, accurate financial records. Clear and comprehensive financial documentation enhances your practice’s appeal and facilitates smoother negotiations.
- Assess Profitability: Evaluate your practice’s profitability by documenting all non-operational and infrequent expenses from the past three years. This helps potential buyers understand your business’s true financial health and growth potential.
- Assemble a Support Team: In addition to your attorney and accountant, consider involving a merger and acquisition advisor and transaction experts. Early planning with these professionals can optimize your practice’s financial position and navigate legal complexities effectively.
- Get a Professional Valuation: Gain insights into your practice’s market value, strengths, and weaknesses with a professional valuation. Choose reputable valuation firms experienced in the plastic surgery sector to ensure an accurate and reliable assessment.
- Gather Due Diligence Materials: Prepare comprehensive due diligence materials, including contracts with suppliers, landlord agreements, payor contracts, insurance policies, employee agreements, summaries of any litigation, office space leases, equipment leases, and regulatory compliance records. Having these documents ready demonstrates your practice’s readiness to prospective buyers.
- Highlight Your Practice’s Strengths and Unique Advantages: Showcase your practice’s success and unique value propositions. Highlight specialized procedures, positive patient outcomes, community reputation, and innovative treatments. Demonstrating what sets your practice apart will attract serious buyers.
- Identify Potential Buyers: Work with your M&A advisor to identify financial and strategic buyers interested in acquiring your practice. A broad search often uncovers buyers willing to offer competitive valuations based on unique motivations. Your advisor can help initiate and manage discussions with potential buyers.
Selling your plastic surgery practice is a pivotal decision that requires careful planning and execution. By following these nine steps, you can ensure a smooth and successful sale, securing your financial future and the ongoing success of your practice.
About Tony Siebel and Olympic M&A
About Tony Siebel and Olympic M&A: Tony Siebel is the Managing Director at Olympic M&A, specializing in selling plastic surgery, behavioral health, medical aesthetics, ophthalmic, and physician-owned practices to private equity and strategic buyers.