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Issues to Consider Before Signing a Final Contract
[By Dr. David E. Marcinko; MBA, CMP™]
[Hope R. Hetico; RN, MHA, CMP™]
Depending on whether the likely buyer of your medical practice is a health system, a private physician or a corporate partner, medical practice sale deal structures will vary.
From the physician’s perspective, deal negotiations are based on consideration of personal as well as financial planning goals.
Therefore, some key issues to consider are presented below to help negotiate the “art of the deal”, and may include:
Working Capital – In or Out
Including working capital in the transaction will increase the sale price.
Stock versus Asset Transaction
Structuring the deal as an asset purchase will increase practice value due to the tax amortization benefits received by the buyer for intangible assets of the practice.
Common Stock Premium
The sale price can be as high as 50% more than a cash equivalent price for accepting the risk of common stock as part of the payment.
Physician Compensation
If your personal financing planning goals are to maximize future practice value, negotiating a lower current salary within a range you feel comfortable with will increase the ultimate practice sale price.
Do the reverse and cannibalize your practice if you wish to increase your current salary.
Assessment
Were you previously aware of these negotiation sales points, and medical practice transaction contract concepts?
Conclusion
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The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
3 core concepts for selling your medical practice
At any given time the market for medical practices is determined by the activities of potential buyers and their forward-looking determination of economic return.
http://www.medicalpracticeinsider.com/best-practices/shopping-another-physician-practice-heres-what-you-need-know-about-todays-market?email=MARCINKOADVISORS@MSN.COM&GroupID=116654
When practice buyers see pockets of opportunity they will invest their dollars accordingly.
Ann Miller RN MHA
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