Purchasing an existing practice can be an exciting prospect. Whether it’s your first practice or you’re an established owner, the process can be lengthy as you weigh all the pros and cons of the potential investment. Making sure you know everything you need to about a practice before seriously considering an acquisition will help protect you from making a poor choice that could end up costing you big in the long run. Below are some considerations to keep in mind when looking to purchase a practice.
Acquisition is Just the Beginning
Even the most aesthetically modern and technologically advanced practice will require some renovations or changes to make it match your branding and practice culture. This is even truer for older practices or ones that simply aren’t up to the standards you hold. It’s important to factor the costs of updating a practice will incur into your calculations. A great deal on a building might not seem so great if you’ll have to pay twice as much to get it patient-ready.
Assess the Assets
Before you commit to purchasing a practice, a professional appraisal of the tangible assets is highly recommended. This can include everything from the soundness of the construction to the usability of the existing furniture or the functionality of the existing equipment. It’s essential to know exactly what is included in your potential purchase and to make sure it’s worth the amount you’re about to pay for it.
When looking to purchase a practice, figure out what reputation the current owners have built in the community. If it has particularly poor reviews or has a hard time retaining patients, those are important potential hurdles to keep in mind. While it’s not impossible to build a new reputation for your new practice, it will require a more proactive effort on your part to establish your separation from the previous ownership.
These tips may help you think more comprehensively about practice acquisition. If you need advice on a potential acquisition you’re considering or are simply looking for additional guidance in running your practice well, contact our firm today!