Congratulations on building a successful plastic surgery practice! As you start to envision the next chapter of your life, it’s essential not to overlook a critical decision—the sale of your business. This article aims to guide you through the necessary preparations and decisions to consider if you are planning to sell your practice within the next 12 to 24 months.

Timing

When considering the sale of your plastic surgery practice, timing is crucial. Most buyers, especially those backed by private equity, often expect the owner to remain involved for 3 to 5 years after the sale to ensure a smooth transition. Therefore, if you plan to fully move on in three years, ideally, you should have started the process of selling two years ago. While it is still possible to expedite the sale, be aware that quicker timelines can affect valuations negatively due to the increased risk perceived by buyers. To maximize the value of your life’s work, begin planning your exit strategy 4 to 6 years ahead of your desired exit date.

Personal Financials and Goals

Surprisingly, many business owners have not consulted with a retirement or wealth planner before deciding to sell their practice. Knowing your financial needs and goals for retirement is crucial. Start by discussing with a financial advisor what you need to retire comfortably. Next, consider obtaining a complimentary market analysis of your practice from a professional consulting firm. This analysis will help you understand your practice’s worth based on its location and the current market conditions, providing you with essential data to make informed strategic decisions.

Team and Service Mix

The concept of “key man risk” is particularly significant in the sale of a plastic surgery practice. This risk refers to the practice’s dependency on the productivity of key individuals, typically the owner or leading surgeons. To mitigate this risk and make your practice more appealing to potential buyers, begin diversifying your service offerings. Expand the capabilities and responsibilities of other surgeons and medical staff to balance the productivity across your team. This approach not only reduces perceived risk but also enhances the attractiveness of your practice to buyers.

Aesthetics of Your Facility

In an industry that prioritizes appearance, the physical aesthetics of your practice can significantly influence a potential sale. While it’s not necessary to undertake a complete overhaul, updating your facility with modern equipment and a fresh look can make a strong impression on prospective buyers. Remember, the visual appeal of your practice can play a substantial role during site visits by potential buyers.

Financial Obligations

It’s important to note that most transactions are conducted on a debt-free basis. Any existing debts associated with the business need to be settled before the sale proceeds can be transferred to your account. Plan your updates and investments carefully to ensure they can be paid off at the time of sale or shortly thereafter.

Professional Guidance

Consulting with a firm that specializes in practice sales, like TUSK Practice Sales, can provide invaluable assistance throughout the sale process. They can offer detailed market analyses and strategic advice to help you navigate the complexities of selling your practice. Gathering a bit of crucial information early on can greatly enhance your readiness for a transaction, giving you the confidence and peace of mind needed to make the best decisions for your future.

Selling your plastic surgery practice is a significant decision that requires careful planning and preparation. By considering the timing of your exit, understanding your financial needs, diversifying your team’s skills, enhancing your facility’s aesthetics, and settling financial obligations, you can significantly increase the likelihood of a successful sale. Always seek professional advice to ensure that every aspect of the sale process is handled effectively.