Optometric Strategies For Success library
Five Characteristics of Successful Buyers and Sellers
To successfully purchase or sell a medical practice requires a certain amount of know-how. Most of all, successful buyers and sellers possess keen planning and organizational skills that ensure they are on the right path and asking the right questions. Do you possess the five key characteristics for successfully completing a medical practice sale or purchase?
1. Careful planner: Successful sellers have thought through their transition for a period of time and have a plan for their practice sale, having researched buy-in and buy-out strategies and understanding which option works best for them.
2. Realistic: Successful sellers understand the value of their practice in realistic terms. They have had the practice professionally appraised using the appropriate methodology for the practice and situation.
3. Financially sound: The successful seller has not based their retirement on the sale of their practice, but rather has invested and saved for retirement.
4. Business savvy: Those who are very successful in selling their practices are fundamentally good business people who have managed their practice effectively and efficiently for years. They understand their professional strengths and weaknesses – especially important in an associate buy-in situation where it’s critical to balance your skill set.
5. Operate with integrity: When selling outright or to a buy-in partner, successful sellers position the new buyer and the practice for long-term success, facilitating the transition by providing personal consultation as needed. The successful seller has a win-win plan that fits his or her personal values and practice needs, ensuring patients continue to receive outstanding care.
1. Realistic: Successful medical practice buyers have thought about ownership for a good while and are realistic about both the perks and pitfalls. They understand their personality and motivations well enough to know they are prepared and suited for the challenges of ownership. They also know their limitations and where they will need to add professional talent.
2. Financially prepared: Smart buyers have worked hard to earn excellent credit ratings and have the financial strengths to borrow the funds they need to purchase a practice they can successfully take to the next level.
3. Visionary: A successful buyer doesn’t look for a perfect practice, but rather a good practice with potential. They have a vision for how to move the practice towards greater success, perhaps through more emphasis on prevention or a higher level of surgical care.
4. Adequate clinical experience: The successful new owner has adequate clinical experience to ensure they can meet the many medical and business challenges of managing a practice.
5. Business skills: Once the deal is signed the buyer has the tools and talent needed to maintain a healthy cash flow. They understand the importance of budgeting and planning, as well as staff management and marketing.
Develop the characteristics and skills outlined above, and you’ll be well positioned for completing a successful practice purchase or sale.
Statements of opinion not necessarily endorsed by the American Medical Association, or any of its subsidiaries, counsels, commissions, or agencies.
|Tammara Plankers, Assistant Vice President, Client Practice Services for Wells Fargo Practice Finance, helps doctors establish and grow their new practices. A Certified Executive Coach and practice consultant for over 15 years, Ms. Plankers assists practitioners in successfully transitioning to practice ownership through the use of proper due diligence, and guides them in developing the management and leadership skills necessary to successfully operate a practice. She can be reached at 888-499-8871 or email@example.com.|
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