Most owners find out what their practice is worth about four years too late

They decide they’re ready, they call somebody, and the number comes back smaller than they expected. Then they find out the reasons, and most of the reasons are things they could have changed if they’d known to start.

The things that move that number take a couple of years to work on, which is why this is worth reading even if selling isn’t anywhere on your mind right now. Most of what raises the price is the same work that makes the place easier to own in the meantime.

I sold my practice. From the day I decided I was ready to the day it closed was almost a year, and I had my house in order before I started. This is the part I wish somebody had handed me five years earlier, when it was all still easy to change.

What’s inside

The arithmetic: replacement cost, earnings, and where the multiple comes from
Current multiples, with the sources named and their interests declared
Why an owner who produces too much of the revenue compresses the price
What a buyer looks at besides you: referral concentration, whether your insurance contracts and Medicare and DMEPOS enrollment survive the sale, the lease, staff retention, documentation
Desk procedures, and the anti-batch rule that keeps them from becoming a project
Advisors, when to bring them in, and how long the whole thing takes
A seven-item checklist to start from

Where should I send it?

Questions, or want to talk any of it through? ron@rontester.com