Provided by: Jennifer Kirschenbaum, Esq.
October 3, 2017
Question:
Jennifer,
I am thinking of selling my practice. What should my timeline be?
Thanks,
Dr. I
Answer:
If selling is just a thought creeping into your head and you do not have a buyer in mind, then the timeline is we should have a discussion immediately. Identifying the right buyer – or any buyer – can take a long time. Selling should really be treated as a multi-year plan. Buyer ID is one issue; a secondary issue is for many buyers the value in the sale is minimizing attrition and the main way to avoid attrition is for you to be around to assist with transition and patient introduction. Depending on the buyer, the amount of time they want you to work may vary. Also, even when a buyer is id’ed sometimes the process just takes a very long time. Sometimes the buyer has a complicated internal system – such as a hospital system that is too big to be nimble and quick in turn around/closing; or sometimes administrative hurdles slow down closing – such as obtaining financing, landlord negotiations for assignment of a real property lease you may not be in control over or waiting on credentialing issues, as examples.
If you think you want to sell, we should talk asap to start the process. Too often I see clients essentially abandon their practice, take patient medical records home “for safe keeping” and just mark themselves as closed because they didn’t plan in advance for a different exit. Lets plan in advance and transfer properly so you avoid having to stay on custodian of record, and so you can potentially see value and a meaningful transition of your practice upon retirement.
