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Selling your medical business...Key Questions on Selling:
Should I sell?The market will always exist for business acquisitions, the consideration you should make is to determine what is your objective. Do you want or need to retire, do something different or work for someone else for a change? Base your decision upon your future plans. Back to Top
What do buyers want most?Sound business operations with key leadership, profit growth and a team concept. Back to Top
Is this the right time?The prime time is when you are experiencing an upward growth in your revenues and profits combined with the peakness of where you feel you can take the business alone. Back to Top
Will I need an attorney?When you are presented with a final contract, you are encouraged to seek an attorney that is familiar with M&A's in the industry. Back to Top
Do buyers want my real estate?Most buyers will retain your real estate lease but, do not have an interest in buying the actual real estate. Back to Top
What is the main focus at due diligence?Buyers will focus on regulatory compliance. They want to ensure proper billing & documentation exist. A hint of fraud or abuse will end the process. Back to Top
How is the purchase price paid?Usually the buyer will pay from 70% up front with a note due in 6 to 12 months to 100% up front. Back to Top
Do I stay on with the business?The answer lies in what the buyer needs at that time. Most buyers would like the seller to stay and grow with them. All owners will be required to sign a noncompete and usually any key employees that stay on with the buyer. Back to Top
Do I tell my employees about my intentions?After a Letter of Intent is signed and on the first day of Due Diligence, not a minute sooner. One in a thousand employees understand the end result. Coaching is provided by our firm on how to handle the news delivery. Back to Top
What is the difference between a Stock deal versus an Asset deal?For these discussions, Stock deals are typically where the buyer purchases your company's stock for cash & a note and liabilities are assumed. Asset deals are typically where the buyer purchases your company's assets only for cash & a note with no liabilities or real risk. Taxation is minimized in both cases. Back to Top
How are valuations determined?Valuations are determined by applying an industry multiple (risk & time factor) to your recasted net income. This multiple formula is determined by 33 variables. Back to Top
What does Indemnification mean? It is where buyers protect their position from any adverse actions that were related prior to the acquisition. The buyer does not want to be held responsible for any prior issues.
What is the main focus at Due Diligence? Buyers will focus on regulatory compliance. They want to ensure proper billing, reimbursement and documentation exist. A hint of fraud or abuse will end the process.
It is the difference in the purchase price between the Net Book Asset Value the buyer is receiving and the intangible value of the company. Goodwill is also taxed at Capital Gains rates versus Ordinary Income.
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