Smart Exit Planning Strategies for Niche Markets
Selling a Group Medical Practice Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a group medical practice business sale isn't as scary as it seems.
Intimidated by a sluggish economy, business buyers are more cautious than ever.
Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a group medical practice business sale. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Timing the Market
Now may be the best time to sell a group medical practice business. With interest rates at all-time lows, it's easy to see why group medical practice businesses are an appealing investment opportunity for savvy investors. Sooner or later, rates will rise, increasing the risk for prospective buyers of group medical practice businesses. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Business Valuation
Professional appraisers can use three methods to determine the value ofa group medical practice business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
The Best Person to Sell Your Group Medical Practice Business
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your group medical practice business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Business owners are subjective and biased about their company's true worth. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
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