How to Plan Your Exit Strategy
We all know that it’s not easy to own a business or practice. However, learning how to plan an exit strategy for your cosmetic medical or dental practice or medspa will help you achieve a smoother transition when you are ready to move onto the next stage in your career. The way to do this is to have your business evaluated, inform the public, seek assistance when selling, make sure there is a physician on board, and know how your business is set up, amongst others. Successful exit strategies are always good to have whether your business is successful or not.
First, have your business evaluated as soon as you realize there’s a chance you may sell it. You should always have your business evaluated professionally as soon as you realize that there’s a chance that you may sell it. This evaluation of your business should include your real estate, equipment, patient load, etc. Doing this will save you a lot of stress.
Second, inform the public. You should always be informing the public before they find out through some other channel. This information coming directly from you is always best. Considering your staff is always the most important, let them know exact details and answers to their questions when breaking the news.
Third, seek assistance when selling. You should always hire a third party to assist you in the sale. If you’re looking to liquidate your business, it’s even more important.
Fourth, make sure there is a physician on board. A physician is the one who sees all your patients and will be the one that could help you get sorted with everything as the physician is very familiar with the business as well. If you are unavailable, clients will begin to see other physicians. Make sure you have a plan in place to ensure the physician is always there.
Lastly, know how your business is set up. It’s important to know what kind of legal entity you own. Why? This will affect who will be able to buy the business from you.
Furthermore, all companies should have an exit strategy prepared when they open a business. Shorr Solutions can help educate you on how to create a successful exit strategy. In this article, we answer the most commonly asked exit strategy questions.
Do You Want To Sell Or Just Close Your Practice? The reason for your close can be due to relocation, financial hardship, lower insurance reimbursements, government regulations, no longer want to manage staff, or being offered a buyout.
How Much Is Your Practice Worth? When figuring this out, you should always have a non-disclosure agreement secured from all parties. Make sure you have legal guidance when figuring this out as well.
Who can Purchase Your Practice? In Florida, people who are non-physicians can own a practice, so it varies from state to state. Be sure to consult with legal, accounting, and consulting professionals who are skilled in this field.
What If You’re Just Going To Close The Practice’s Doors? If you close the practice’s doors, ensure proper protocol that benefits your patients. Always make sure that your patients are taken care of before closing.
Do You Need To Let The Licensing Boards know? Most states require that you have to notify them to let the licensing boards know.
What Are Your Existing Financial Obligations? These can be equipment, lasers, websites, rent, employee salaries, etc. For these existing obligations, you will want to make sure it is properly addressed.
Who Should You Have On Your Team? Your team should include a healthcare attorney, accountant, and broker.
Look for more information? Read our latest piece in Orlando Medical News magazine, “Top Seven FAQs on Planning Your Exit Strategy.”
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About Shorr Solutions:
Shorr Solutions is an award-winning practice management consulting company with offices in South and Central Florida. We work with aesthetic medical practices in all 50 states of the U.S. to help them strengthen the operational, financial, and administrative health of their business. With decades of industry experience, our father-daughter partners, Jay Shorr and Mara Shorr, lead our knowledgeable team of experts to assist practices in the aesthetic medical fields increase efficiency, increase revenue, and decrease their costs.
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