Exit Strategy: Selling Your Aesthetic Practice
Have Questions About Selling Your Practice?
Check out frequently asked questions below!
- This depends on what point you want to sell your practice at and the different stages of your practice. Your business is worth either a factor of your gross sales and a factor/ratio of earnings/EBITA (Earnings Before Interest, Taxes, and Amortization).
- We will go through your P&L statements quarter by quarter and year by year. Ultimately, you will sell your practice based on either: a multiple of your gross or net profits, future potential/earnings, the value of your capital equipment and/or tangible assets, the goodwill of your practice (patient base), and your inventory.
You need to have an exit strategy in place in the event that you want to sell your practice due to circumstances such as the following:
- Illness or disability
- Premature demise (death)
- Natural disaster (hurricane, earthquake, fire, flood, etc.)
- Sudden and unexpected catastrophe (e.g. pandemic)
- You’re ready to relocate, travel, or transition into another career
You can see that it’s important that you have an exit strategy in place essentially right now. There’s no telling when these events will happen. Due to the COVID pandemic, we’ve seen providers wanting to retire earlier than expected or sell their practices and work for another practitioner.
We coach you in defining, planning, and refining your action steps towards exiting your business. There will be no guesswork and all your bases will be covered.
Having an exit strategy also ensures you get the most value for all of your efforts placed over the years. You want to prepare your practice for sale, improving as many areas as you can to increase its worth. For example your marketing ROI, patient lead conversions, current processes, and profits.
When looking to sell your practice, you can either train a predecessor (i.e., a family member) or trainee to take over, or you can just simply sell to a buyer.
- If your exit strategy is just about selling and not setting up an heir, then we will focus on getting you the highest monetary value.
- If your plan is to train an heir, you must choose someone that gels with you and your staff, and your patients. If your patients do not trust the doctor who will be treating them after you exit, then there will be no practice. Making sure your patients are indoctrinated with the new provider is the key to the success of your practice once you exit.
- Once you have your heir in place, we help you set up a legal agreement that makes the transition seamless.
Questions? Contact Us!