Practice Sales & Transitions

Business Life Cycle Management

Planning is bringing the future into the present
so that you can do something about it now.
Alan Lakein

Do You Have a Plan? Tracker Enterprises, Inc. has developed a philosophy and program to allow healthcare professionals to understand, regardless of which life cycle their careers are in, to do “exit planning” (planning on leaving your practice) or “entrance planning” (planning on buying and existing practice or starting from scratch) well in advance of when they expect to transition out of their practices. This exit/entry planning road map includes the absolute necessity of being prepared to exit/enter from Day 1, just in case the practitioner experiences a catastrophic reason to leave practice whether that reason occurs shortly after starting a practice or after 40 years of practice or anytime in between. The plan also includes how to value a practice at any time in the Business Life Cycle or when an exit is being anticipated. Remember this when you consider the timing of exit planning: Hope is not an effective business strategy!

Is Exit Planning Worth It? You need to begin to think in terms of your personal and financial goals well in advance. Since tackling a task of this magnitude can be daunting, practice owners often ask whether devoting the time and money to a project of this magnitude is really worth the effort. The complexity of transition planning can be significant since it includes issues such as a practice valuation, taxation, legal documentation, financial planning and especially the emotional aspects associated with planning for the exiting process and not knowing what you will do next in your life. It is imperative that you understand that good planning can be the difference between a successful transition and a complete collapse of all your goals. The emphasis needs to be on “Planning,” which will then support the “Exiting” process. We can help you with all of these issues. 

“Dr. Pavlik and his team have been so helpful in valuing my practice. He has coached me so that my practice will be worth more when I do eventually prepare to sell it and helped prepare a great exit planning strategy. Due to his expertise, patience and understanding, I will request his services when I do decide to retire. Thanks so much for your help.”                     – Dr. M. B., CT

time, time management, stopwatch

When Should You Prepare an Exit Plan? Planning an exit can seem like a daunting task involving a lot of time – time that you don’t have. In addition, several issues need to be considered including building the value of your practice so that you can exit at the selling price you want and deciding on what you want to do with your life after you leave. We can help.

How To Improve The Value of Your Practice Now? Growing value usually does not occur unless owners focus their efforts on deliberate actions that move their practices toward their goals. These actions include continuing to add value drivers (more on value drivers later, but this will introduce you to the concept) to your practice that will result in it being worth more. Value driver examples include: improving the customer base, keeping equipment current and in good-working order, building a strong employee base, keeping accounts receivables collectible and to a minimum, developing a strong management and advisory team, and having a powerful marketing plan, etc.

 

investment, interest, money
sunset, beach, guadeloupe

Someone is sitting in the shade today because
someone planted a tree a long time ago.
Warren Buffett

Protect and Prepare Yourself Now! Whether you’re looking to exit your practice in 10 months, 10 years, etc., one fact governs them all: all owners, even the hardest working most dedicated workaholics, will exit their practices someday whether by choice, death, or otherwise. You need to be able to answer the question, “What will happen to me, my practice, and my family upon my exit?” The consequences of proper planning have real effects on the things you care about most.

If You Are Selling Your Practice, We Will Help You Prepare By:

  • We will help prepare a valuation of your practice.
  • Using our IFF (Intuitive Financial Forecasting) system, we will help you increase the value of your practice.
  • Creating an Exit Plan that you can revise when needed.
  • Helping you establish goals.
  • Constantly measuring, monitoring, evaluating
  • Creating checklists, e.g., time lines, deadlines, expectations.
  • Preparing an in-depth, market ready Practice Valuation that you can use to sell or evaluate your growth each year.
  • Creating a road map for your future exit.
  • Helping assemble a dream team of advisors.
  • Considering alternatives to outright retirement.
  • Getting accounts receivables to an acceptable Buyer level.
  • Creating an employee base any Buyer would love to keep.
  • Evaluating a merger with a HSO (Health Service Organization).
  • Preparing and marketing to Associates or Buyers.
  • Negotiating with potential Associates or Buyers.
  • Preparing and/or evaluating all documents, e.g., Business Reports (CBRs), Non-Disclosure Agreements (NDAs), Due Diligence (DD), Letters of Intent (LOIs), etc.
  • Accompany you at Closing. 
arrows, district, evaluation

If You Are Buying a Practice or Starting from Scratch, We Will Help You Prepare By:

  • Searching for available opportunities.
  • Evaluating the potential practice to make sure that the selling price makes good sense from your perspective.
  • Creating an Exit Plan that you can revise when needed.
  • Helping you establish goals.
  • Constantly measuring, monitoring, evaluating of the potential practice to be sure the Owner is maintaining cash flow.
  • Creating checklists, e.g., time lines, deadlines, expectations.
  • Preparing an in-depth, market ready Practice Valuation that you can use to sell or evaluate if the value meets the price.
  • Creating a road map for your future entrance strategy.
  • Helping assemble a dream team of advisors.
  • Considering alternatives to outright purchase.
  • Negotiating accounts receivables to an acceptable Buyer level.
  • Evaluating and/or creating a great employee base.
  • Evaluating marketing and updating if necessary.
  • Negotiating with the Seller and his/her representatives.
  • Preparing and/or evaluating all documents, e.g., Business Reports (CBRs), Non-Disclosure Agreements (NDAs), Due Diligence (DD), Letters of Intent (LOIs), etc.
  • Accompanying you at Closing. 
  • Practice management coaching 
  • Consulting for owner and staff for ongoing success

See What Others Have Experienced With Us

View “Practice Sales & Transitions”