Selling Your Practice in a Few Years? Don’t Make this Mistake
It’s natural for owner-doctors who are looking toward retirement to want to scale back re-investment in their practices. Why sink a lot of money into a facility that you intend to leave? Why not let the new owner decide what upgrades are necessary?
But the fact is, buyers today have high expectations for what they want in a facility—and they want to see it when they walk in the door. Not surprisingly, it’s the practices in top condition that attract the top buyers and sell at the right price. A leading-edge practice that demonstrates proven profitability creates value for the person coming in, whether that person becomes a partner or sole owner.
If the facility doesn’t make a good first impression and a prospective buyer is mentally calculating how much it will cost beyond the purchase price to upgrade, the value of the practice will be significantly suppressed. It’s not just technology, either. If you have a welcome area that hasn’t been refreshed since Ronald Reagan was president, you’re not exactly positioning your practice as a desirable frontrunner in the marketplace.
On the other hand, it’s remarkable what a few key upgrades can do to enhance a practice’s value. And don’t forget that it is called re-investment for a reason; strategically planned facility improvements should stimulate additional growth in the practice, giving you the opportunity to improve productivity and the practice’s tangible assets. Let’s not forget the value you get out of working in a great environment, either. You’re not just making the improvements for the next owner. The sooner you make the necessary re-investments, the more time you have to enjoy the facility you’ve created.