Optimizing Business Exits
Selling a Rehabilitation Medical Practice
With the economy struggling to rebound, the shadow inventory of rehabilitation medical practices in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful rehabilitation medical practice
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a rehabilitation medical practice sale works.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Average Preparation Time
There are no effective shortcuts for selling a rehabilitation medical practice. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. At a minimum, plan on spending six months preparing your rehabilitation medical practice for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. But it's highly unlikely that the sale will meet all of your expectations, especially if your initial estimates were created without the benefit of a solid appraisal or market knowledge. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your rehabilitation medical practice. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Sweetening the Deal
Today's rehabilitation medical practice buyers expect sellers to offer concessions to persuade them to close the deal. Although a lower asking price is the ultimate seller concession, a price reduction isn't the only way to attract serious buyers. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in rehabilitation medical practice sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Share this article
Additional Resources for Entrepreneurs