5 quick tips on how to make your clinic more appealing to buyers

26 Apr 2022

If you’re thinking about selling your clinic in the future, take a look at these 5 quick tips on how to make your business more appealing to buyers.

 

Don’t be the main earner

 

It will be more difficult to sell your clinic if you are directly responsible for the majority of the revenue. Even if you plan to stay on for a while after the sale, prospective buyers want to buy a business that will continue to run without you. Distribute new clients across your team and keep your case load light.

 

Size does matter

 

The time and costs involved in buying a small business are often the same as buying a large one, so most buyers look have a minimum turnover in mind. In our industry, £250k is typically the entry point for more seasoned buyers. Selling a smaller business is certainly possible but your options and sale price may be limited.

 

Track your numbers

 

Keep good management accounts and review them regularly. Your business value and saleability are directly linked to how profitable it is. Having a firm grasp on your financials early on allows you to make adjustments to boost profitability and will also stand you in good stead  when the time comes to sell.

 

Employed is best

 

Your staff are a key asset for any buyer, particularly given the current recruitment challenges. Buyers favour businesses with employed staff because employment contracts provide better security and engagement with the company.

 

Formalise agreements

 

Make sure you have adequate contracts in place for your premises, commercial relationships, and staff. Deals often fall apart because clinic owners cannot show adequate contracts – NHS contracts with no formal agreement in place and expired leases are more common than you think, and can erode the value of your business.

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