About twenty years ago I wrote an article that was published in Dynamic Chiropractic titled “Are You Thinking of Selling Your Chiropractic Practice?” It was a multi-step bullet point process to “how to sell a practice”. Recently I reread it and it enlightened me to how some things have changed and how others have stayed the same.
Things that stayed the same:
- Have a strategy; get a plan. Establish a timetable to coordinate all of the upcoming tasks needed to advance toward your next endeavor. Still a valid point.
- Compile practice documentation including practice stats, tax returns, lease, etc. to present to prospective Buyer. The more professional the presentation the higher the perceived value of the practice.
- Establish an asking price, a price that you can justify. Some practice brokers feel compelled to generate a formal appraisal. I do not feel it necessary to ever put forth the effort and cost for an appraisal if there is not a questioning or adversarial party.
- Develop a professional marketing package on Your Practice. Compile all facets of the practice in one book for the prospective buyer. The Buyer and the Buyers council will value your practice in relationship to the quality of its presentation.
- Give your practice a facelift. A clean and uncluttered office will increase the value of your practice.
- Drafting the Chiropractic contract and working out the terms has not changed. As a consultant positioning the Buyer and Seller to focus on the end result excluding their emotion perspective has always been my job.
The above steps have not changed in the twenty years that I have been consulting doctors, planned strategy and professional presentation of practice data never gets old.
What has changed considerably is the marketing of a Chiropractic practice.
- Marketing a practice for sale has changed dramatically into the digital age. Years ago a doctor placed a classified ad into The Dynamic Chiropractic rag paper to sell a practice. Everyone looked there to find practices for sale.
Today digital know-how wins. Marketing a Chiropractic practice for sale has many components that most Chiropractors need the aid of a Chiropractic Practice Broker. Nationally the Chiropractic brokers vary widely in expertise. Some brokers are high tech, others are region and others specialize in gorilla marketing.
Today choosing the right broker that fits your need is your difficult task. They will all try to sell you their service. You should choose a broker that is listing practices similar to yours in value and geographical location.
Over the years I have worked with most of the national Chiropractic brokers and I can honestly say that there are wide differences to their strategy and intention. Some care about the doctor and others care about the money.
- Negotiating a practice for sale has also changed to a more data valued and less emotional value. The Seller must have their data in order for the Buyer and the Buyers council. No longer can a Seller sell a Buyer on “he or she is very nice” Critical analysis has elevated in the digital age. The assistance of lawyers and accountants is more prevalent now than years ago.
I have aided hundreds of Chiropractors over the past twenty years in the Buy/Sell/Contract/Appraisal/Negotiation events in their professional career. My offer is to all Chiropractors to pick my brain with your pressing unique situation. I enjoy the building of a strategy to resolve a problem and to accomplish a goal. I may not be able to directly assist you, but be able to direct you someone that would be a good fit.
About David Foster D.C.
Dr. Foster has practiced Chiropractic for the past 26 years and has co-owned 12 satellite practices. His undergraduate education includes a BS degree from Boston University with a major in finance and marketing prior to attending Life Chiropractic College.
With his acquired knowledge and experience Dr. Foster has consulted the Chiropractic community for the past decade in appraisals, Buy-Sell and Associate agreements in addition to a wide variety of legal, financial and strategic issues related to the business of Chiropractic.