Optimizing Business Exits
Selling a Radiology Practice
You've learned a lot during your tenure as a radiology practice owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a radiology practice sale works.
Qualified buyers are constantly looking for attractive radiology practices. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa radiology practice: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your radiology practice based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Current Market Conditions
No one plans to sell a radiology practice in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a radiology practice. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your radiology practice. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
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