Practice Sales & Transitions
Business Life Cycle Management
Planning is bringing the future into the present
so that you can do something about it now.
Alan Lakein
Do You Have a Plan? Tracker Enterprises, Inc. has developed a philosophy to allow healthcare professionals to understand, regardless of which life cycle their careers are in, to do “exit planning” (planning on leaving your practice) or “entrance planning” (planning on buying and existing practice or starting from scratch) well in advance of when they expect to transition out of their practices. This exit/entry planning road map includes the absolute necessity of being prepared to exit/enter from Day 1, just in case the practitioner experiences a catastrophic reason to leave practice whether that reason occurs shortly after starting a practice or after 40 years of practice or anytime in between. Learn about ideas on how to increase your practice’s value with the addition of Value Drivers and how to stop the bleeding by ridding your practice of the Value Killers that decrease your practice’s value. Remember this when you consider the timing of exit planning: Hope is not an effective business strategy!
Is Exit Planning Worth It? You need to begin to think in terms of your personal and financial goals well in advance. Since tackling a task of this magnitude can be daunting, practice owners often ask whether devoting the time and money to a project of this magnitude is really worth the effort. The complexity of transition planning can be significant since it includes issues such as a practice valuation, taxation, legal documentation, financial planning and especially the emotional aspects associated with planning for the exiting process and not knowing what you will do next in your life. It is imperative that you understand that good planning can be the difference between a successful transition and a complete collapse of all your goals. The emphasis needs to be on “Planning,” which will then support the “Exiting” process. We can advise you on all of these issues.
“Dr. Pavlik and his team have been so helpful in valuing my practice. He has coached me so that my practice will be worth more when I do eventually prepare to sell it and helped prepare a great exit planning strategy. Due to his expertise, patience and understanding, I will request his services when I do decide to retire. Thanks so much for your help.” – Dr. M. B., CT
When Should You Prepare an Exit Plan? Planning an exit can seem like a daunting task involving a lot of time – time that you don’t have. In addition, several issues need to be considered including building the value of your practice so that you can exit at the selling price you want and deciding on what you want to do with your life after you leave. We can help.
How To Improve The Value of Your Practice Now? Growing value usually does not occur unless owners focus their efforts on deliberate actions that move their practices toward their goals. These actions include continuing to add value drivers (more on value drivers later, but this will introduce you to the concept) to your practice that will result in it being worth more. Value driver examples include: improving the customer base, keeping equipment current and in good-working order, building a strong employee base, keeping accounts receivables collectible and to a minimum, developing a strong management and advisory team, and having a powerful marketing plan, etc.
Someone is sitting in the shade today because
someone planted a tree a long time ago.
Warren Buffett
Protect and Prepare Yourself Now! Whether you’re looking to exit your practice in 10 months, 10 years, etc., one fact governs them all: all owners, even the hardest working most dedicated workaholics, will exit their practices someday whether by choice, death, or otherwise. You need to be able to answer the question, “What will happen to me, my practice, and my family upon my exit?” The consequences of proper planning have real effects on the things you care about most.
If You Are Selling Your Practice, We Will Help You Prepare By:
- We will help prepare you for a valuation of your practice.
- We can advise you on increasing the value of your practice.
- We can help you devise an Exit Plan.
- Helping you establish goals.
- We can show you how measuring, monitoring, evaluating should be an operational habit.
- Creating checklists, e.g., time lines, deadlines, expectations.
- How to understand what goes into a Practice Valuation that you can use to sell or evaluate your growth each year.
- Creating a road map for your future exit.
- Helping assemble a dream team of advisors.
- Considering alternatives to outright retirement.
- Getting accounts receivables to an acceptable Buyer level.
- Creating an employee base any Buyer would love to keep.
- Evaluating a merger with a HSO (Health Service Organization).
- Preparing and marketing to Associates or Buyers.
- What you should know about negotiating with potential Associates or Buyers.
- All documents, e.g., Business Reports (CBRs), Non-Disclosure Agreements (NDAs), Due Diligence (DD), Letters of Intent (LOIs), etc. and how to understand them.
- What do you need to know about the Closing process of selling your practice.
If You Are Buying a Practice or Starting from Scratch, We Will Help You Prepare By:
- How to search for available opportunities.
- How to evaluate the potential practice to make sure that the selling price makes good sense from your perspective.
- How to create an Exit Plan that you can revise when needed.
- Helping you establish goals.
- How to constantly measure, monitor, evaluate and redirect to be sure the Owner is maintaining cash flow.
- Creating checklists, e.g., time lines, deadlines, expectations.
- What to look for and understand in a Practice Valuation.
- Creating a road map for your future entrance strategy.
- Helping assemble a dream team of advisors.
- Considering alternatives to outright purchase.
- How to negotiate accounts receivables to an acceptable Buyer level.
- Evaluating and/or creating a great employee base.
- How to negotiate with the Seller and his/her representatives.
- How to understand all documents, e.g., Business Reports (CBRs), Non-Disclosure Agreements (NDAs), Due Diligence (DD), Letters of Intent (LOIs), etc.
- Practice management coaching
- Consulting for owner and staff for ongoing success
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