By DR SIMON HOCKEN
We’re often asked to help a practice owner grow a practice prior to sale so as to realise the maximum possible value.
In the last few months our clients have sold practices to Oasis, Bupa, Portman and to a local dentist. In all counts the sale price exceeded their expectations and the sellers are relieved and delighted.
All of the sellers have agreed to take some responsibility for the practice post-sale, with various degrees of ‘earn-out’ in place. In this new world of sky-high goodwill values, many buyers are going to want to see the seller stick around for a while post sale, in order to make sure that the goodwill sticks around too.
This isn’t necessarily a comfortable phase for the retiring principal and I’m sure all our sellers would rather start their retirement early, however they are comforted by their bank statements and the knowledge they have achieved a significant degree of financial independence and security.
The loud and clear message from these four practice sellers is to start your exit-planning early, preferably at least three years prior to selling, if you are serious about maximising your sale price.
Then, you will need a strategy to substantially increase your turnover that goes beyond re-arranging the deck chairs, and two to three years to implement the changes. Remember, buyers will take a view on the last three years of practice history, not the last three months.
If you’d like to talk about your exit strategy give me a call direct on 07770 430576.
Merry Christmas and a happy new year
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