5 Tips to Maximize Your Medical Practice Appraisal

The healthcare industry is more competitive today than ever. For a medical practice to survive, it needs to deal with various things from rising operational cost to ensuring you have the best equipment at your disposal. If you can face these issues head-on, only then will your practice be able to thrive and become profitable.

There are, however, steps a medical practice can take to maximize its practice appraisal. Some steps are simpler than others but each can lead to a more successful practice. Which of course, will look attractive to buyers if and when you plan on selling your practice. The 5 following tips will help you take your practice to the point where you can seek the maximum asking price for it.

Have a strong online presence

Most people turn to the Internet when they need information about anything. Whether they are looking for a service or just interested in learning, the Internet provides them with everything they need. Creating a website for your medical practice can help it grow exponentially, giving your practice access to thousands of possible patients within your city.

But it isn’t just about establishing an online presence, you need to market your practice properly to beat the competition. There will be hundreds of other medical practices within the city, you need to edge them out in search engines. This can be achieved with a comprehensive SEO strategy with an emphasis on both local SEO and content marketing through blogging. A strong online presence makes selling a medical practice much easier since you have a wider audience to cater to.

Buyers prefer full-time medical practices

If you ask medical practice brokers what puts buyers off towards a practice, one of the first things they will mention is part-time practices. Part-time practices just don’t yield the same price. This is because buyer’s think that the potential is far less as compared to full-time practices. While the buyer may consider making the practice full-time after acquiring it, they know that the shift will take some time and yield results later down the road. Which is why most prefer full-time practice so they can come and overtake the reins without having to make many changes, yielding results that they expect from the get-go.

Know what will impact your practice’s value

While most medical practices focus on ensuring the equipment and facility is in top shape prior to selling the practice, the most appealing and important element when it comes to medical practice valuation will be your customer base. Buyers will want to look at how your customer base has grown and whether or not it will continue to grow.

The buyer would be more interested in your customer base than anything else. Which is why they are looking to buy an active practice rather than establish one on their own. The equipment and facility, they can upgrade on their own, if needed. This doesn’t mean the two aspects don’t factor into the valuation, they do but not as much as the customer base.

Have a transition plan in place

Buyer’s value a seller that has a transition plan in place prior to the completion of the deal. The plan not only makes the transition smooth but also makes the deal more appealing to buyers. It shows them that this is more than just a sale for you, you actually want to ensure that as the deal goes through, you will be there to aid in the transition. Making sure that the customer base has no issues during the time and the deal goes through smoothly.

Have all your paperwork ready

You can’t expect to get the best price for your medical practice if you don’t know what it is worth yourself. Getting the paperwork in order answers one of the most asked question by sellers, how do I put a price on my medical practice? At the same time, buyers will want to see all your financial information, cash flows and what not before they commit to a deal. You need to have all your books in order and not just for the past year, stretch it as far back as you can go. The minimum recommended is at least 3 years. This not only shows the buyers that you have things in order but also shows how your practice has performed. How it grew through the years and shows them the potential of future growth also. Which can help you get the maximum price for the practice.

As you embark on your quest to sell your medical practice, you need to understand that getting maximum value for the practice is going to require some effort from your end. You can’t expect to sell at a premium price for a mediocre practice. The five tips mentioned above will have you ready for a sale that will get you the most for your practice. Making your quest more rewarding and a little less tasking on you.

Luis Brons works as a Consultant at MedLaunch helping with day-to-day consultation to sellers, firms as well the company itself. Luis also loves to write on topics that help people sell their medical practice.