Before you can even think about selling your practice, you first need to know what kind of buyer you will be marketing your practice too. As you prepare for the sale of your practice, you need to have the ideal buyer in mind when you make decisions about your staff, equipment, and real estate. Here's a breakdown of the ideal buyer for each size of practice.
Low Revenue Businesses
An outside, independent buyer will probably turn their nose up at a low revenue practice. However, many corporations and large practice groups will jump at the chance to add another location to their chain. If your practice is in the low revenue category, you should be watching out for opportunities to merge with a larger entity, and reach out to corporations who have the funds to add more locations under their umbrella. A merger may be the fastest and simplest way to arrange the sale of your practice in this category.
A well-established and stable business with steady revenues is often the best place for a new entrepreneur to buy in. This is especially true if you are hoping to sell to someone who is already a member of your practice. For new entrepreneurs, a mid-sized business offers a good foundation upon which to learn the ropes without being too high stakes. One of your existing associates may be willing to take the leap into entrepreneurship if they are already familiar with the practice as a whole and can learn the finer points of running the back office.
High Revenue Businesses
High revenue businesses appeal to independent buyers from outside your organization. These are investors who are hoping to jump on to an already successful ship and keep moving forward. They are usually experienced at buying and selling businesses, and can keep up with the fast pace of being in a high revenue environment. They will also take a broader view of your equipment, real estate, and staffing as future potential.
As the owner of a practice, it is important for you to always understand who your target buyer is. Knowing who your target market is will help you make decisions that are conducive to the sale of your practice. You should conduct research in your market to determine where your business falls in terms of revenue and size so you can clearly define who your ideal buyer will be.