Do's and Don'ts of Selling Your Practice
- Do keep good records and have them ready. A good set of books can significantly increase the chances of a successful and profitable sale and will speed the buyer's due diligence process.
- Do allow sufficient time to sell your practice. Selling a practice is much more difficult and complex than selling a house. The time your practice is on the market will depend upon the current market, the type, and size of your practice. While some practices sell quickly, you should expect up to six months and allow up to a year to complete a sale.
- Do consult with a knowledgeable Southeast Transitions Practice Broker about the value of your practice. But don't pay large amounts of money for an appraisal of your practice. Professional Practice Brokers are the only people who know what practices are actually selling for. If you want a 3rd party market valuation report prior to selling the practice, your Southeast Transitions Practice Broker can discuss these services with you.
- Don't wait too long to sell. The best time to sell is when your practice is doing well. Sell your practice when it is performing well and sell from strength.
- Don't underestimate the value of your practice or overprice your practice.
Under-pricing will cost you money; overpricing will cost you precious time and maybe even the sale of the practice. The "I can always come down in price" attitude sounds good, but it eliminates the best buyers, your practice stays on the market too long and you lose valuable time. Start at a reasonable price. Smart buyers know what a practice should sell for and will pass up overpriced opportunities to focus on more reasonable ones. Owners often minimize profits to lower taxes, so the "bottom line" might not show the real value of your practice. Your professional Southeast Transitions Practice Sales Broker can help you determine the real value of your practice and demonstrate the real net for purchasers.
- Don't sell to the wrong buyer. Your competitor, supplier, or favorite employee may not be the best or right buyer; or willing to pay the right price.
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