Imagine this:
… You just sold your physical therapy practice.
… You know that it’s in competent hands.
… You have a reliable future source of income.
… And you have more time for other projects, your retirement, or your family
Not a bad way to start a new chapter in your life.
Unfortunately, not every practice owner has that option. Some get stuck and overwhelmed in the day-to-day operation. And even though they would like take a non-leadership role or reduce their hours, it somehow never happens.
To avoid that you must take action and look for the right opportunities and a desirable buyer.
Here are 3 things that are important to consider if you want to sell your physical therapy practice.
Tip 1: Know what you want
When you talk to a potential buyer, such as Kinetic Care Group, you will probably be asked what you are looking for.
Do you want to sell all or part of your business? Do you want to cash out or have a source of ongoing income?
Are you looking to retire, or do you want to continue working? If you want to work, what would that ideally look like? Full time or part time? As a PT or as an advisor?
If you know what you want, you are more likely to get it.
Tip 2: Have your financials ready
At some point, after you have signed a non-disclosure agreement, you will be asked for financial documents. It is good to have them prepared ahead of time to speed up the process.
Most buyers will ask for the past three years of P&L statements and tax returns.
Buyers will want to understand details about your earnings (EBITDA – earings before interest, taxes, depreciation and amortization). A buyer will want to differentiate between operating expenses and non-recurring expenses. This term is typically called normalized or adjusted EBITDA. In addition to understanding operational expenses, a buyer will want to exclude any personal expenses.
Tip 3: Decouple the financial transaction from the emotional transaction
There are really two transactions when it comes to selling your practice: One is financial and the other is emotional.
You certainly worked hard to not only build a successful practice, but to also build a solid reputation. This is a process that takes many years to accomplish, and it’s valuable.
So when you first hear an offer it may be better or worse than you expected. Don’t lose faith, a good buyer will pay a fair price. And beware of overly rosy offers; sometimes these don’t materialize after negotiations.
It helps to know beforehand what your objectives are, and to step back emotionally. You are more likely to be happy with the sale if you understand the mechanics of what determines value. A solid buyer will communicate with you how they arrived at a purchase price.
Feel free to contact Kinetic Care Group if you are interested in selling the business you worked hard to build
We are actively acquiring, or in some cases partnering with, successful physical therapy practices. We are not business brokers, we are direct buyers. And we are prepared to close quickly. Kinetic Care Group is also looking for talented people to help us grow and deliver the best services possible.
If you would like to learn more, please email us at info@kineticcaregroup.com or call / text us directly at 213-328-3332.