Often doctors start looking to sell their practices when they are approaching retirement. However, the value of any given practice is the doctor’s contributions, especially with single-provider practices (if there is no doctor, there is no business). Even with multi-doc practices, the owner(s) typically account for a meaningful portion of the revenue and profitability. So, if they retire, the financials will likely suffer. The optimal time for selling your practice 5 to 10 years before retiring.
Doctors with a longer runway before retirement, who also have an equity stake in the practice post-sale, are more likely to invest additional time and energy to continue to grow the practice after the initial transaction. Such owner/surgeons can realize a higher valuation not only with the first transaction, but also with subsequent transactions if they take place.
We regularly hear plastic surgeons say that want to rid themselves of the administrative headaches of running a practice. We work with buyers that have Management Services Organization structures (MSO) in place that provides support in the areas of finance & accounting, treasury (bank account management, bill payments, etc.), HR, recruiting, IT infrastructure, procurement, and savings (such as for medical supplies).
If you own a practice that is grossing more than $5M a year, and plan to work more than 5 years we have buyers that are interested in talking to you about purchasing your practice. Contact us for a no obligation discussion at david@gotplasticsurgeryjobs.com or call/text 270-266-1024.
