1. Consider the reasons why the current Doctor is selling the practice:

GOOD reasons for selling:

  • Wants to retire
  • Needs to move (relocating to another city or country – not just down the street)
  • Health reasons prevent practicing
POOR reasons for selling:

  • Needs money
  • Has lease issues
  • Has pending legal issues
  • Wants a new location in the same area
  • Increased competition in area
  • Licensure/disciplinary issues
  • Practice and catchment area has been declining
  • Major tenant or business relocating
  • Insurance coverage has decreased or been eliminated in the area

2. Consider the pros and cons of purchasing a practice:

(+) Positive:

  • Provides immediate income/ positive cash flow
  • Financing available (from existing loan or parties involved)
  • Immediate patient load
  • You are the owner and can build on what already exists
  • Income potential is great
  • Established location
  • Immediate access to clinic contacts and suppliers
  • Staff is trained and experienced
  • You can change practice operations / procedures / staff to suit
  • Less time / energy required compared to starting up
  • New marketing plan / ideas may attract more new patients and create
  • interest in long-term patients
(-) Negative:

  • Large initial start-up costs / capital required
  • Clinic may be outdated – may need lease, equipment, or furniture updated
  • Competition – more buyers than sellers
  • High responsibility – expenses and liability
  • Practice operations/procedures are deeply entrenched
  • Staff may be resistant to new ideas, change and may have personality conflicts
  • Large volume of patients to treat immediately
  • Responsible for all administrative duties
  • Patients have to transition from existing Doctor/therapist(s) technique/philosophy/personality to yours
  • Patients are used to existing Doctor/therapist(s) and feel abandoned

3. Important points to consider:

General Questions:

Interpersonal Questions: