If you have come to the decision to sell your practice, finding a buyer can be a difficult task. Finding the right buyer is even tougher. If you are looking to get a high valuation for your practice and also ensure that your practice continues to thrive, it is essential to find the right buyer. This article will touch upon some of the most important factors to consider in searching for a corporate buyer for your practice.
Gain perspective
When you consider selling your practice, the first thing you should do is gain perspective from those around you. By speaking with family members, employees, and other stakeholders, you will be able to assess your options and come to a conclusion on whether to sell your business. Although these opinions may be very subjective, it is still very important to take these perspectives into consideration, as it will influence their lives as well.
Ask a professional
Getting advice from a professional is crucial when you consider selling your business. By speaking with accountants, lawyers, and brokers, you will benefit from their professional opinions on the matter. They will not only help make introductions, demonstrate value, and manage the deal process, but also make your business more attractive to corporate buyers. The process of selling your business is much more complex than selling a car or a house and getting help from professionals will allow you to continue running your business, while they handle the complexities related to the sale.
Build and maintain relationships
Building and maintaining a broad network of professionals in your industry will help you find the right buyer for your business. As many retired professionals have already gone through the process of selling their business whether that is to a former associate or corporation, you will be able to gain a better understanding of the deal process. Some common ways of building networks are through networking events, industry, and peer organizations. In addition, by keeping those in your network regularly updated, you will be able to reach a broader net of prospective buyers.
Know what your buyers are looking for
By understanding what the buyers are looking for in a practice, you can focus on the areas that need improvements and thereby attain a higher valuation for your business. In addition, when prospective buyers approach you, they will ask a series of questions, such as your practice’s profitability, gross profit margins, and customer satisfaction ratings. To answer these questions with confidence, you will have to prepare in advance.
Online presence
In today’s digital age, it is crucial for any business to have an online presence. Through online marketing, you will not only get more patients coming through your doors, but also attract more investors and buyers to your business. By marketing your business online on listing websites, such as BizBuySell or DealStream, you will be able to reach more prospective buyers and build a wider cast to attract additional buyers.
Research the buyers
Just like how buyers have their process for evaluating businesses, business owners should be doing their due diligence of their own on prospective buyers. Asking questions about their past transactions, business acumen and finances are critical to ensuring that your business is being sold to a trustworthy buyer that will continue to operate the business in good faith. Working with brokers and valuation companies can eliminate a lot of the risk and ensure that you are working with the right partner and getting a fair valuation for your business.
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About Dwek Capital
Dwek Capital is a private equity and advisory firm that specializes in the healthcare sector: dentistry, dermatology, optometry, physiotherapy, and veterinary. We work with leading healthcare groups across North America to provide them with the best opportunities out there. If you are a practice owner that is looking to sell your practice and would like to learn more about some of the opportunities currently available, please contact us at info@dwekcapital.com and our partners or associates would be happy to give you a free consultation.