1. Consider the reasons why the current Doctor is selling the practice:
|GOOD reasons for selling:
|POOR reasons for selling:
2. Consider the pros and cons of purchasing a practice:
3. Important points to consider:
- How long has the practice been for sale?
- Why is the practice for sale?o What is for sale- Turn-key, files, goodwill, equipment / furniture, leaseholds, accounts receivable, real estate?
- Is existing financing available or will the existing Doctor/therapist(s) help with financing?
- If there is an associate or contractor, why are they not buying?
- If there is an associate or contractor, are they planning on staying?
- What is in their contract? Is the practice protected against competition and solicitation?
- Age and condition of leaseholds, equipment, and furniture?
- What is the lease situation?o What type? Length, cost, leaseholds, is it transferable or extendible, future plan for location, upcoming renovations, or major tenants?
- Are there any financial/liability/contractual obligations of the practice?
- Are there any impending liability or lawsuit issues with the practice?
- Are the past financial records and tax returns available?o Revenues, overhead and net income? Are they increasing, stable, or decreasing?
- What is the insurance coverage breakdown?o WCB, auto, medicare, social assistance, native affairs, etc?
- Is the practice in or near an area you want to live?o urban, suburban or rural
- What type of practice is it?o Acute care, wellness, integrative, or mixture
- What are the patient demographics?o Age, income, education, ethnicity, gender
- Are old appointment books available/included?
- Is the existing Doctor/therapist(s) willing to work an appropriate transition period?
- Is the income generation transferable?
- How did the previous Doctor/therapist(s) market and advertise?
- Existing Doctor/therapist(s) personality?o Do not want to follow a superstar, 85% of practice success is non-technical skills or personality (New England Journal of Medicine)
- What is the existing Doctor/therapist(s) technique/philosophy/style?
- What is the existing Doctor/therapist(s) gender?
- How long has the Doctor/therapist(s) been in practice?
- How long has the Doctor/therapist(s) been in practice at this location?
- How long has the staff been there?o Are they satisfied, type of training received, will they remain?