Seller Due Diligence
There are two parts to seller due diligence. First, you must review your own house so you can get ahead of things before a transaction is on the horizon. If this is the first time you have taken a close look at your practice then you will find action items. Start early because you never know what you will find.
Second, you have to perform diligence on the buyer. Deciding to sell your practice is a major decision and you must be sure you know your new partners. Your diligence deep dive will include financial, strategic, and cultural questions.
- Identify regulatory risks and liabilities
- Secure and review all material agreements (payors, leases, employees, etc.)
- New partner financial, strategic, and cultural review
- Prepare proper integration plan
The earlier you find regulatory and contratual issues the better your position going into a transaction. Every practice has issues to address and doing so early helps reduce risk and potential liability.
We follow a proven diligence process that uncovers areas for improvement and also highlights things your team does very well. Let our experienced diligence team find and begin to address those issues for you now so you know what to expect during your transaction.
In most cases, selling your practice means you will go from owner – with all autonomy and authority – to an employee – with new person(s) to whom you will report. The success of this transition depends greatly on whether you choose the right partner.
The right partner depends on a number of factors. What is the purchase price? How much autonomy and decision making authority will you maintain? Does the new culture fit both you and your office(s)? Will you have to switch practice management or EHR software providers? These are just a sample of the items you have to balance when choosing your new partner.
You picked the right partner and finalized the transaction documents. Sorry to break it to you, but the work just started. The next step is the most important — planning your integration into the new practice.
How much time do you have until closing the transaction? Is there any training that must happen before closing? Are there any contracts that you need to terminate? There are a number of items to iron out to ensure a succesful integration. We can walk you through this process based on our experience of seeing successful and unsuccessful integrations.
