Top 5 Hidden Facts When Selling Your Medical Practice
Thinking about Selling Your Medical Practice? Well hold on—because there are some facts about selling a practice that most people don’t know, and they can make or break your deal. Let’s dive into the Top 5 Hidden Facts you need to know before putting that ‘For Sale’ sign up!
Goodwill:
First up, did you know that the majority of your practice’s value doesn’t come from your fancy equipment or even your prime office location? Nope—it’s all about goodwill. That’s your reputation, patient loyalty, and your established referral network. Buyers are really paying for your relationships and the trust you’ve built in the community.
Here’s a hidden tip: Buyers may want detailed patient retention metrics or referral data to assess your goodwill. Be ready with that info!
Transition Agreements
Fact number two—transition agreements. This one’s big, folks. Most buyers won’t just write a check and wave goodbye. They want you to stick around for a while to help with the transition.” That could mean training the new owner, introducing them to patients, or even consulting part-time for a few months. The length and scope of this agreement can really affect the sale price—so negotiate wisely.
Payer Contracts
Here’s a shocker: Contracts with insurance companies and payers don’t always transfer to the new owner. Your buyer might have to renegotiate them from scratch. To avoid delays, start reviewing those agreements early. Flag any restrictions or renegotiation clauses, and consult with an attorney if needed.
Staff Retention
Buyers aren’t just buying the practice—they’re buying the people who keep it running. A strong, stable staff can seriously boost your practice’s value. But here’s the hidden catch: If key employees quit during the sale process, it can scare off buyers. Consider offering retention bonuses, or negotiating with the new owner to keep everyone on board.
Legal and Regulatory Compliance
Finally—compliance. This one’s huge. A small issue with HIPAA, billing, or employee classification could ruin the sale or get you in legal trouble.
Here’s the hidden gem: Before you list your practice, hire a healthcare attorney to do a compliance audit. Fix those red flags before buyers spot them.”So there you have it—the Top 5 Hidden Facts about selling a medical practice! These tips will help you prepare for a smoother sale. They will also help you get the best deal possible. They cover everything from goodwill to making your practice legally airtight.
Take the next step with confidence! Schedule a meeting with Dike Law Group today to ensure selling your medical practice is legally secure and financially sound. Let our experts guide you to success—book a FREE Intake Discussion or an In-Person Meeting
Read more about Selling Your Medical Practice here.