Selling Your San Diego Medical Practice? Focus on These Areas to Maximize Your Value
Are you in the market to sell your San Diego medical practice? If so, please contact us here at San Diego Corporate Law. We have the legal experience to help. Along with contacting us, here are some suggested areas to focus on in order to maximize the value of your medical practice.
Keep the Main Revenue Stream Steady or Up-Trending
Most often, the main value to a medical practice is the revenue stream generated from patient visits and medical services provided and invoiced. The key to maximizing value when selling is to maintain or have an up-trending revenue stream. This means that, as you contemplate selling your practice, do NOT slow down. Indeed, arguably you should work a little bit harder to ensure that your financial statements and accounting records are showing positive revenues and potentials. Adding other physicians and employees can help with this. Note that revenue is sometimes more important than net profit since some buyers may have business models that focus on expense reduction. The “book of business” is the key attractive feature for some buyers.
Invest and Upgrade the Optics
It is worth investing in upgrading the “optics” of your practice. A shabby out-of-date patient waiting area will be off-putting to potential buyers. Sometimes, updating can be as simple as a new, more stylish color of paint and some new furniture. Updating the “optics” can also help bump up sales and revenue. There is a reason that giant corporations – McDonald’s for example – are nearly always in the process of remodeling.
Keep Your Contacts and Keep Networking
Like the patient “book of business,” potential buyers are interested in your vendor lists, your industry contacts, and your networking relationships. So, to maximize the value of your business, do not let those aspects of your practice atrophy.
Update Your IT, but Tread Carefully
As with the “optics,” make sure your IT is relatively up to date. This is particularly important with billing programs and interfaces. Nothing brings down value more than a truly antiquated computer system, old programming, and employees without current training in billing coding and practices. At the same time, tread carefully. There is no point in spending a lot of money since many potential buyers will have their own systems. Likewise, new software and computer systems can cause disruptions that impact item #1 above, which is keeping and expanding the revenue stream. The solution here may be to outsource some billing and related services.
Keep in Steady Contact With Your Trusted Corporate Attorney
Your dedicated corporate attorney can help with the process of preparing your San Diego medical practice for sale. Part of maximizing value is being prepared to move quickly when the right buyer arrives on the scene. In this respect, your corporate attorney can be prepared by having disclosure documents ready for tender, preparations made with lenders and vendors, malpractice carriers and the like.
Contact San Diego Corporate Law
For more information on selling your medical practice as a solo or as a member of a group practice, contact attorney Michael Leonard of San Diego Corporate Law. To schedule a consultation, Mr. Leonard can be reached via email using this form or by calling at (858) 483-9200.