We were recently asked to do an ‘urgent’ valuation on a practice for the purposes of a sale, because the owner had suddenly fallen ill and could not continue on. This is a timely reminder that, ‘there but for the grace of God go all of us’, and that, particularly if you are a practice owner, you need to run your business as efficiently as possible at all times.
This will have two main benefits:
1: You will most likely maximise your profit
2: Your practice will be in a much better position for sale, should the need arise.
When I owned my own practice, I always wondered, “what if something happened to me? What would the practice be worth if it had to be sold at short notice, and is my practice ‘ready for sale’ now?” There is an old saying that “the day you ‘enter a business’ is the day you should start planning to exit the business” – a bit like buying a boat I guess, but a lot closer to home! Sadly, some practices are not in a position to sell in the short term – they need time to make critical changes, or risk having to accept a fire-sale price, or just close the doors. Please call us if this is a problem for you