THINGS TO CONSIDER WHEN BUYING A PROFESSIONAL PRACTICE
Congratulations on being in position to own your own practice and control your destiny! There are many considerations to cover as you prepare to buy. Here are a few:
1. Is the proposed purchase a good deal? At OptiRova LLC we believe the best deals are the ones that are fair to both the buyer and seller. Both parties need to be satisfied that the deal is in their interest. If you are concerned about the value of a practice you are considering, contact us for an impartial appraisal.
2. Financing – The two most common ways to finance the purchase of your practice are Small Business Administration (SBA) loans, or privately funded loans through a bank or financial institution. OptiRova LLC can recommend Eye Care-specific lenders in both areas. The main reason to go with SBA is if your own available funds for a down payment are less than a private lender would require. While the SBA lenders may require less money down, they also typically have more red tape, fees and requirements accompanying the loan. Private lenders may or may not require more money down – in some instances they will finance 100% of the cost of acquiring the practice. Speak with us or our recommended vendors for specifics on your situation.
3. Accounting – Having a competent accountant that is familiar with eye care practices can be a huge help to any Eye Care Professional (ECP). If you already have an accountant that understands our specific industry, great! If you don’t, contact us to find the trained professional help you need.
4. Legal – Will your new business be set up as a sole proprietor, a PLLC or PLC, or a corporation? There are tax and liability implications with each choice.
5. Training – Famous motivational speaker Zig Ziglar stated, “The only thing worse than training employees and losing them is to not train them and keep them.” How will you train your staff? The better-trained the staff is, the better your practice’s image will be in the community, the more efficient your practice will be, and the more profitable the venture.
6. Marketing – How will you market your practice? How will you position your practice in the community? Growing sales of the practice has an exponential effect on profitability. Assuming all the bills are being paid now, incremental sales will cause about 60% of sales dollars to fall to the bottom-line profit. If this is a concern of yours, speak with us.