Profitable Niche Market Exit Plans

Selling an Orthopedic Practices

You've learned a lot during your tenure as an orthopedic practice owner. The next step is to position your business for the demands of the business-for-sale marketplace.

Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how an orthopedic practice sale works.

At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your orthopedic practice on the market.

Average Preparation Time

There are no effective shortcuts for selling an orthopedic practice. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey orthopedic practice operation. At a minimum, plan on spending six months preparing your orthopedic practice for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.

Seller Concessions

Seller concessions are becoming more commonplace in business-for-sale transactions. The most common seller concession is seller financing. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.

How to Choose a Business Broker

Good business brokers inevitably produce better business sales. In the orthopedic practice industry, experience is a must-have characteristic for qualified brokerage. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling orthopedic practices.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary