One of small-business and private-practice owners' most common questions is about when to sell. It's difficult to tell the right time, as it depends on the market, the business's productivity, and the owner's personality. Below, we'll explain some key signs it's time to sell your private practice if you're an owner.
The Market Is Hot for Sellers
A good sign that you should consider putting your private practice for sale and attracting buyers is the market is heating up. As a business owner, you need to know the market surrounding your practice and its ebbs and flows. When the market is hot, and your practice has never been more valuable and may never be as valuable as it is now, you should strongly consider selling. It's the old "strike while the iron is hot" motive for selling your private practice.
Business Momentum
Following the same logic of striking while the iron is hot, if the business is more successful than it’s ever been, that's also a good time to consider selling. You'll never get a better price for your practice than when it's at its most profitable and successful, so selling when it's at its peak will maximize your negotiating position and market value. It may seem difficult to walk away when things are going so great, but there's never a better time to sell than when you don't need to and can negotiate from a position of strength to buyers.
You're Reaching Retirement Age
We all know that when it comes to retirement, you need to have a plan in place so you don't end up working well into your golden years. If you're getting close to your retirement age—three to five years away—you should start thinking about your selling and succession plans. You don't want to hit retirement age and get caught flat-footed without a plan to sell the practice and start retirement.
You're Overworked and Exhausted
Every business owner understands the grind of running a small business or private practice. Whether you've been running a private practice for 5, 10, or 20 years, the grind of it all can be grueling and exhausting. If you're not finding much joy and motivation to put in your best effort each day, that's a sign it's time to sell your private practice.
The Competition Has Increased
Competition is another way many private-practice and small-business owners become motivated to sell and move on to something else. Perhaps, when you first opened your physical therapy or other private practice, you had little to no competition and a stranglehold on the market. But your success brought other competitors, and your local market cap has steadily decreased. If this sounds like your predicament, now may be the time to sell.
Get Help Selling Your Private Practice at Private Practice Transitions
If you believe the time has come to list your private practice for sale, Private Practice Transitions can help. Whether you're selling a physical therapy practice, a tax practice, or something else, our experienced brokers will help you get the word out, screen potential buyers, and even help negotiate. Contact our staff to ask about our expert brokers or to learn more about our services.
