Most healthcare business owners have very limited experience in selling a medical practice. A qualified intermediary will understand how challenging the M&A (Merger and Acquisition) process can be, especially from a tax, legal, and regulatory perspective.
It can be a challenge for most medical practice owners to find an intermediary who understands how their business operates. An intermediary with previous experience owning and operating a healthcare business will be more knowledgeable about your business, allowing potential buyers to have a clearer understanding of your business.
Seigel Advisory Services provides a range of consulting and M&A advisory services for physician practices and other healthcare business owners throughout the United States.
Selling a Medical Practice — Choosing an Intermediary
The majority of intermediaries are “generalists,” in that they sell companies in a variety of industries without gaining an expertise in a given industry. As a result, most intermediaries fail to understand the nuances and intricacies specific to the healthcare industry. An intermediary with a detailed knowledge of the healthcare industry is best equipped to assist healthcare business owners looking to sell their business.
Therefore, it is crucial to retain an intermediary with an expertise in all areas of the M&A process to obtain the highest price for your business. Many healthcare transactions involve the sale of a “security,” often in the form of stock, membership interests, or partnership interests. In the sale of a security, known as a “Stock Sale,” only intermediaries that are registered representatives of a broker-dealer can be paid a fee based upon the successful completion of the transaction.
If a business owner engages an intermediary that cannot lawfully conduct securities transactions, devastating results can occur, such as the rescission and unwinding of a sale years after its completion. Therefore, healthcare business owners should look for an intermediary that has a Series 79 and a Series 63 registration to ensure that the transaction is compliant with securities laws and regulations.
How to Sell Your Medical Practice — Navigating Obstacles
Understanding of Tax Consequences
The corporate structure of your healthcare business can have a significant impact on the tax consequences resulting from the sale of your business. An intermediary with a background in tax, such as a tax attorney or a Certified Public Accountant, is best suited to assist healthcare business owners in minimizing their tax liability from the sale of their business.
Integration of Succession Planning
For many healthcare business owners, their business often represents the highest concentration of their net worth. And once the business is sold, many healthcare business owners may not be financially or emotionally prepared for life after the deal. A qualified intermediary should be able to integrate and educate business owners with sound succession planning strategies throughout the M&A process.
Medical Real Estate Expertise
Whether a healthcare business owns or leases their medical office building, the medical real estate is an integral component of any healthcare transaction. Regardless of whether you intend to retain or sell your medical real estate, an intermediary with experience in medical real estate can tailor a strategy specific to the objectives of healthcare business owners.
Selling Your Medical Practice — A Solid Foundation
Legal Experience
All healthcare transactions require a team of professionals to assist in the transaction. In a typical healthcare transaction, an attorney specializing in healthcare mergers and acquisitions will be responsible for drafting and reviewing the legal documents. An intermediary with previous legal experience can efficiently coordinate their work with the attorneys involved in the transaction, resulting in significant time and cost savings for healthcare business owners.
Seigel Advisory Services — A Healthcare Investment Bank
Seigel Advisory Services is a boutique healthcare investment bank located in Atlanta, Georgia that assists physicians and healthcare business owners in the sale of their medical businesses and their medical real estate. We can successfully help you answer the question “how to sell a medical practice’.
Our advisors are licensed practitioners in the fields of investment banking, law, accounting, commercial real estate, and medicine. We provide a range of consulting and M&A advisory services for physician practices and other healthcare business owners throughout the United States.
Selling Your Healthcare Business — A Helpful Guide
Some of the topics in this guide include:
- Knowledge of the Healthcare Industry
- Mergers and Acquisitions Expertise
- Medical Real Estate Expertise
- The Integration of Succession Planning
- How to Sell a Medical Practice
- Learn about Selling your Healthcare Business
Download the guide today and learn all about efficiently selling your medical practice.
Seigel Advisory Services
A Healthcare Investment Bank
691 John Wesley Dobbs Ave NE, Suite C
Atlanta, GA 30312
Phone: (727) 460–4858
www.seigeladvisoryservices.com
