If you've decided to sell your practice, hopefully, you've given yourself plenty of time to prepare for the sale. There are a lot of tasks to be completed before a sale can be finalized. Let's walk through the steps from the moment you decide on selling your practice until the deal is done.
Making the Decision
The decision to sell your practice is life changing. It deserves plenty of consideration and support from your family and friends. If you aren't 100 percent committed to selling, it's not the right time to start looking for buyers. It's a lot harder to change your mind once you're under contract. If there are things that need to be done to make your practice more attractive you should do them before you go to market.
Valuing Your Practice
Contact a professional appraiser to help you decide on a fair market value for your practice. You should get this done as soon as possible because the information you learn from the appraiser can really determine whether or not you are ready to sell.
Get with Your CPA or Tax Professional
Selling your practice is definitely going to have an impact on your taxes. It's best to start preparing for this well in advance. Fortunately, your CPA or tax professional may be able to give you helpful information to reduce your tax burden.
Gather Practice Data
The best way to stay organized while selling your practice is to gather all relevant data into a single packet or binder. You can give this information to potential buyers in one easy to read format. This ensures that all parties receive the same information and that nothing is left out. Everything from demographics to cash flow analysis should be included.
Work with Your Broker on Marketing
Now is the time to start working on a marketing plan for your business. Your broker will be able to help you formulate a plan to attract not just buyers, but qualified buyers. In addition, they can give you tips for getting your practice prequalified with lenders which can go a long way toward helping a buyer get the deal done.
Once you've attracted a buyer and everybody is ready to move forward, now is the time to work out a lease or purchase of the realty, negotiate an employment and get a contract in writing. The contract may include contingencies that need to be met such as financing and repairs. Once the contract is underway you will need to tie-up any loose ends before you hand over the keys.
Close the Deal
Finally, you've made it to the closing table and it's time for money to exchange hands and signatures to finalize everything. If you've taken care of all of the tasks above, closing should be a breeze.
These are the steps you'll need to cover between deciding to sell and actually selling. Working with a qualified broker is the best way to ensure you get everything done.