1How long does it take to sell a practice?
The time is longer than you might expect as the purchasers do a great deal of legal, commercial and financial due diligence so they largely determine the timetable.The average time is from our receiving instructions having offers is about 6 weeks and then after that a further 16 weeks to completion of the deal.An experienced broker will manage that process through the various stages from the preparation for the initial approach through to completion of the deal.
2What costs are we likely to incur relating to the sale?
Brokers fees vary depend on many factors. We have found that being totally independent of the corporate buyers gives the client confidence that his best interests are being looked after.Our fees, which are only paid if a deal is concluded, are based solely on the amount received for the goodwill. In addition, lawyers’ fees will need to be paid and, depending on the property ownership, a lease and if you continue in employment, agreeing a service contract. Your lawyer should be one of your choosing. You will also need to spend a great deal of time dealing with the buyers’ questions as they go through the due diligence and you will need to pay your accountant to assist you with this.You can save time and costs by getting certain matters in order before you begin by ensuring you have a recent asbestos survey, EPC and your PAT testing is up to date.
3When should we tell our staff we are selling the practice?
As late as possible, as you do not know that the sale will take place and staff can be unsettled in the meantime. The exact timing of that will be discussed and agreed with the purchaser. As there will be a number of visitors to the practice during the process, you may need to give an explanation such as your bank, insurance brokers or surveyors require information
4Will the purchaser make wholesale changes to the business once they have bought it?
They are paying a lot of money for the practice and they will not damage the goodwill by undoing what you have built up over many years. Changes will generally be agreed with you before implementation but such as computers may need to change to fall in line with their requirements.
5What are the major factors in determining the price for a practice by a corporate purchaser?
Turnover, maintainable profitability, growth prospects as well as location are some of the factors a purchaser will consider when deciding the price, he is prepared to pay. This information supported by a clear and comprehensive sales memorandum, which we prepare, has proved to be the key to obtaining the best price.