It’s no secret the chiropractic industry attracts maverick personalities. That means when it’s time to sell the practice, many chiropractors are tempted to do it themselves. This can save the chiropractor some money on a broker’s fee. However, without clinic sales experience, the juice may not be worth the squeeze.
Going the “for sale by owner” route means the chiropractor will need to accurately price their own practice, organize their finances for the past few years, find a buyer, guide the buyer through the sales process, negotiate, draw up a contract, work with the bank and assist with the transition. While the FSBO method certainly can be done, it comes with risks that can easily be avoided by using a broker or sales consultant who specializes in the chiropractic industry.
How Brokers Can Help
From the start, a broker can help keep the chiropractor’s ego in check when it comes to setting the sale price. Qualified brokers know the market and can bring an objective eye to the appraisal. This ensures the chiropractor can recoup the full value of the practice without pricing it too high, which could cause the clinic to sit on the market for too long.
Brokers also act as an intermediary during the negotiation process and can help skittish buyers come to a decision. “There’s so much to it with these young apprehensive buyers and getting them through the finance process, and then having both sides understand what a proper transition looks like and all the little things that need to be done correctly,” says Kevin Misenheimer, a broker with Progressive Practice Sales in Chattanooga, Tennessee. Many brokers will offer packages to assist the buyer as well as the seller through the deal.
Perhaps most importantly, brokers bring their expertise to the legal, financial and regulatory aspects of selling the practice. This begins with assistance organizing financials and profit and loss statements so buyers can review the practice and secure funding. This saves time for the chiropractor to focus on maintaining a robust business so they can maximize the value of their practice in the sale.
Choosing a Broker
Working with a broker or sales consultant can help chiropractors navigate the sales process, maximize the value of the practice and more efficiently make a sale. When choosing a broker, brokerage fees and closing rates are important, but chiropractors should also consider accessibility and expertise. Working with firms that have expertise across the spectrum of the sale process, from marketing to financing to closing the deal, can make the process smoother from start to finish.