Practice sale: How to increase your practice value!
Disposing of one's own practice is an important issue that physicians in private practice have to deal with in the course of their professional careers. The value of the practice plays a central role, as does the question of how the value can be increased in the short and long term. Read here what is important when selling your practice.
The most important answers to selling your practice at a glance:
Grundlegend für die Berechnung des Wertes Ihrer Praxis ist der materielle Wert. Dazu zählt zum Beispiel das Mobiliar der Praxis. Zusätzlich wird der immaterielle Wert („Goodwill“), der sich zum Beispiel aus dem Praxisstandort und dem Patientenstamm zusammensetzt, bestimmt. In der Summe ergeben Sie den Gesamtwert Ihrer Praxis. Etablierte Verfahren für die Bestimmung des Praxiswerts sind die Bundesärztekammermethode und die Ertragswertmethode.
Eine gute Vorbereitung ist beim Praxisverkauf notwendig. Erstellen Sie am besten einen Ablaufplan für Ihr Veräußerungsprojekt. Maßgeblich für den Verkaufspreis ist der Praxiswert. Haben Sie diesen ermittelt, können Sie Ihre Praxis auf fachspezifischen Praxisbörsen mit einem aussagekräftigen Exposé inserieren und mit Käufer in Kontakt treten.
Den Möglichkeiten geeignete Nachfolger zu finden sind fast keine Grenzen gesetzt. So können Sie Ihre Praxis zum Beispiel an ein Familienmitglied abgeben oder über Inserate auf fachspezifischen Praxisbörsen, in Fachzeitungen und -zeitschriften nach übernahmewilligen Kollegen suchen.
Retirement is approaching: the average age of all doctors is now 54. Many of them have their own practice and are dealing with the question of what to do with the practice in the future. If there is no family member to whom the practice can be transferred, it is usually sold. However, this process is complex, not least because of the valuation of the practice. Making the intention to sell visible also plays an important role. Where can you advertise to make buyers aware of your practice?
Practice exchanges: Here you can sell your practice
You have made the decision to sell your practice and are now looking for a successor? An advertisement on a specialist practice exchange makes your request visible and can bring you together with buyers. At THP AG, for example, you will find an exchange aimed at dentists. Podiatrists can advertise their practice on the website of the Federal Association of Podiatrists.
Do you practice outside of large metropolitan areas? Then you can offer your practice at landarztboerse.de. Regardless of where you advertise, it is necessary to determine a purchase price. For this purpose, a practice valuation is essential
Practice value: How to find the right price
Before selling your practice, you should determine the value of your practice in order to find out what price you can (and should!) demand from the buyer. Basically, the value of your practice results from the tangible or net asset value and the intangible value, also called "goodwill".
The net asset value of a practice includes:
- Technical equipment
- Furniture
- EDP
The intangible value of a practice includes various aspects, such as:
- Location or site
- Patient base
- Competitive situation
Methods for value determination
There is currently no legally binding method or regulation. There are therefore many methods for determining prices. The best known are the new German Medical Association method according to the "Guideline for the Valuation of Medical Practices" and the modified capitalized earnings value method.
The website der-niedergelassene-Arzt.de provides detailed information on the procedures.
Online calculator to determine your practice value
You can get an initial estimate of the value of your practice online even without an appraiser. On the site of the company MMP you can determine an approximate value by entering your operating income, expenses and other factors affecting value. However, don't be discouraged if the calculated figure is less than you would like. You can increase the value through targeted measures.
Important: The calculator does not replace a professional valuation by an appraiser and serves only as an orientation!
Tips for increasing your practice value
Since a practice sale is usually planned five to ten years in advance, you probably still have enough time to increase the value of your practice through targeted measures despite your desire to sell.
Long-term opportunities for value enhancement
You will benefit from the lucrative effects of the long-term measures even during your professional life and at the same time make your practice more attractive for buyers.
For physicians with a bit of patience, the following measures offer themselves:
- A broad range of IGeL services: Individual health services are increasingly in demand from patients. By offering an appropriate range of services, you enable higher sales potential for yourself and thus also for your successor.
- Qualified practice staff: Since the staff has to be taken over as well, interested parties look closely at the competencies of the staff. Dedicated employees with additional qualifications not only benefit your practice, but also your sales project.
- Demographically balanced patient base: A diverse mix of young and older patients is more attractive to young physicians interested in taking over than an "overaged" patient base. You can attract new patients to your practice with targeted online marketing measures, for example.
- Existing cooperations with specialists, laboratories and hospitals: Cooperations can be used to increase the intangible value of your practice in particular.
If you lack the time to take long-term steps to increase value, you can pursue comparatively short-term strategies that will swing the price of your practice in your favor.
Short-term opportunities for value enhancement
To increase the value of your practice in a shorter period of time, there are three options in particular that, when combined, have the full effect:
- Improving practice management: Efficient processes in your practice relieve your staff and enable your patients to have a pleasant visit. Standardized processes - at reception, for example - enable you to make optimum use of existing resources and reduce waiting times.
- Modernizing technical equipment: Prospective practice managers are reluctant to invest in a practice with outdated equipment. So if you still have a few years left until the handover, it may be worth your while to overhaul the technology selectively or completely.
- Digitization of bureaucratic processes: Digital solutions such as the electronic patient file or tools for digital anamnesis like Nelly simplify the day-to-day work for you and your employees. Modern technical solutions also leave a positive impression on your patients - just as they do on buyers.
Increase the value of your practice with Nelly
Nelly makes your practice management simpler, more efficient and saves you and your staff many man-hours during anamnesis, which you can invest in patient care. Thus, Nelly adds value on various levels:
- Having more time for treatment pays off in terms of patient satisfaction.
- Happy patients are more likely to recommend you to others.
- They provide a larger patient base that buyers are happy to pay extra for!
How Nelly works
Instead of printing out documents and having them signed by hand, you can take a paperless medical history via your patients' smartphones. You can also obtain signatures for many documents in this way in compliance with the law and GDPR. And all with just one click. Create a digital workflow in your practice now. We will advise you on your individual case free of charge and without obligation!
The personal designations used in this article always refer equally to all persons. Double naming and gendered designations are avoided in favor of better readability.
Retirement is approaching: the average age of all doctors is now 54. Many of them have their own practice and are dealing with the question of what to do with the practice in the future. If there is no family member to whom the practice can be transferred, it is usually sold. However, this process is complex, not least because of the valuation of the practice. Making the intention to sell visible also plays an important role. Where can you advertise to make buyers aware of your practice?
Practice exchanges: Here you can sell your practice
You have made the decision to sell your practice and are now looking for a successor? An advertisement on a specialist practice exchange makes your request visible and can bring you together with buyers. At THP AG, for example, you will find an exchange aimed at dentists. Podiatrists can advertise their practice on the website of the Federal Association of Podiatrists.
Do you practice outside of large metropolitan areas? Then you can offer your practice at landarztboerse.de. Regardless of where you advertise, it is necessary to determine a purchase price. For this purpose, a practice valuation is essential
Practice value: How to find the right price
Before selling your practice, you should determine the value of your practice in order to find out what price you can (and should!) demand from the buyer. Basically, the value of your practice results from the tangible or net asset value and the intangible value, also called "goodwill".
The net asset value of a practice includes:
- Technical equipment
- Furniture
- EDP
The intangible value of a practice includes various aspects, such as:
- Location or site
- Patient base
- Competitive situation
Methods for value determination
There is currently no legally binding method or regulation. There are therefore many methods for determining prices. The best known are the new German Medical Association method according to the "Guideline for the Valuation of Medical Practices" and the modified capitalized earnings value method.
The website der-niedergelassene-Arzt.de provides detailed information on the procedures.
Online calculator to determine your practice value
You can get an initial estimate of the value of your practice online even without an appraiser. On the site of the company MMP you can determine an approximate value by entering your operating income, expenses and other factors affecting value. However, don't be discouraged if the calculated figure is less than you would like. You can increase the value through targeted measures.
Important: The calculator does not replace a professional valuation by an appraiser and serves only as an orientation!
Tips for increasing your practice value
Since a practice sale is usually planned five to ten years in advance, you probably still have enough time to increase the value of your practice through targeted measures despite your desire to sell.
Long-term opportunities for value enhancement
You will benefit from the lucrative effects of the long-term measures even during your professional life and at the same time make your practice more attractive for buyers.
For physicians with a bit of patience, the following measures offer themselves:
- A broad range of IGeL services: Individual health services are increasingly in demand from patients. By offering an appropriate range of services, you enable higher sales potential for yourself and thus also for your successor.
- Qualified practice staff: Since the staff has to be taken over as well, interested parties look closely at the competencies of the staff. Dedicated employees with additional qualifications not only benefit your practice, but also your sales project.
- Demographically balanced patient base: A diverse mix of young and older patients is more attractive to young physicians interested in taking over than an "overaged" patient base. You can attract new patients to your practice with targeted online marketing measures, for example.
- Existing cooperations with specialists, laboratories and hospitals: Cooperations can be used to increase the intangible value of your practice in particular.
If you lack the time to take long-term steps to increase value, you can pursue comparatively short-term strategies that will swing the price of your practice in your favor.
Short-term opportunities for value enhancement
To increase the value of your practice in a shorter period of time, there are three options in particular that, when combined, have the full effect:
- Improving practice management: Efficient processes in your practice relieve your staff and enable your patients to have a pleasant visit. Standardized processes - at reception, for example - enable you to make optimum use of existing resources and reduce waiting times.
- Modernizing technical equipment: Prospective practice managers are reluctant to invest in a practice with outdated equipment. So if you still have a few years left until the handover, it may be worth your while to overhaul the technology selectively or completely.
- Digitization of bureaucratic processes: Digital solutions such as the electronic patient file or tools for digital anamnesis like Nelly simplify the day-to-day work for you and your employees. Modern technical solutions also leave a positive impression on your patients - just as they do on buyers.
Increase the value of your practice with Nelly
Nelly makes your practice management simpler, more efficient and saves you and your staff many man-hours during anamnesis, which you can invest in patient care. Thus, Nelly adds value on various levels:
- Having more time for treatment pays off in terms of patient satisfaction.
- Happy patients are more likely to recommend you to others.
- They provide a larger patient base that buyers are happy to pay extra for!
How Nelly works
Instead of printing out documents and having them signed by hand, you can take a paperless medical history via your patients' smartphones. You can also obtain signatures for many documents in this way in compliance with the law and GDPR. And all with just one click. Create a digital workflow in your practice now. We will advise you on your individual case free of charge and without obligation!
The personal designations used in this article always refer equally to all persons. Double naming and gendered designations are avoided in favor of better readability.
Laura Sophia Hauck
Author
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