Often I am asked, “where would I even start?” when it comes to the topic of selling your private practice and I get it. It is intimidating all around when you start thinking about selling your practice. We as therapists, we are not taught this in school. Rarely do we start our practices with the idea to sell but life happens and we find ourselves with this opportunity. Now what?
That is why I created my course From Start to Finish: Selling Your Business Successfully to be able to provide a step by step guide to selling your practice for people like you. Whether you plan to sell now or never, there is value to be found in this course.
“If I were to sell my practice, how would this decision impact it?”
This simple statement will help ensure that you are actively creating systems and processes that are streamlined and efficient. This will make your practice better and easier to run, which inevitably will lead you to success when keeping or selling your practice.
Lay the Groundwork Early
It is never a bad idea to check in with your practice in an honest way. Looking at your practice with a different lens can be beneficial. Often we get caught up in the everyday issues that are more pressing or obvious. Which is understandable, it is our job to put out fires and keep operations running smoothly but let’s take a minute to check in on those areas. Follow through this checklist & see where you can improve or areas where you can show more attention to.
- Tidying Up Your Books – Hire A Bookkeeper
You may already have one, which is great! Bookkkeepers can help us make sure our books are cleaned up and in order. If you want your practice to be appealing to a potential buyer, having organized financial records is crucial. It will also make the process that much smoother when you are ready to sell. Being able to delegate this task to someone else allows extra eyes to catch things that you may not or streamline the process in a way you may have overlooked.
- Delegate – As Many Tasks As You Can
It may sound backwards. Or maybe you are thinking – why would I do that? I can easily do all of the tasks I have been doing for years. When you are trying to position your practice to sell one day, it is important to detach the business from the owner (you). Imagine how appealing it looks to a potential buyer to see how all these operations work without your direct time and attention. This shows a buyer that if they were to buy your practice that you could walk away and things would still operate smoothly, bring in the same amount of revenue, and remain just as successful. Now, if you do not plan to sell your practice this is still a very important step! Sick days are no longer catastrophic, you are able to be present for family emergencies or even better – vacations. On top of that, you can start to beat burnout if it has not already hit.
- Document – EVERYTHING!
As therapists, we are used to documenting our sessions. This is a habit we have formed, something that comes naturally to us when we are with our clients. It is time to take that same energy and apply it to our practice. Start documenting e v e r y t h i n g. In my course From Start to Finish: Selling Your Business Successfully I fully dive into this topic in a detailed way but I will give you an exclusive look on what to document. First is, financials, making sure your processes behind how you handle things such as – billing and who handles it, payroll and how often your employees are paid, how bills are taken out of your account and what the overall amount is each month. Second is, your client base – how you communicate with them/what systems you use, what brought them to the practice (a referral, an ad, google/website form, etc.), paperwork, etc. Lastly, keep track of insurance contracts, programs used, and document when changes are made when it comes to things such as switching EHR systems and the reasoning behind it.
Positioning Your Practice For Sale
As mentioned above and you will hear often regarding this topic is to streamline your business operations. Take the time to make sure that the procedures and processes are laid out in a way that makes your practice attractive to buyers. Along with that, do the extra work of researching what your unique selling points are and the market. Showcasing on client demographics, location and any other specialities that make you stand out is a way to standout. If you are reading this and you do not plan to sell your practice, this is a key step that can help you market your practice appropriately in the most effective way. If you know your niche, your audience and what the need of your community you serve is – you can really scale your practice.
Establishing a strong customer base is the goal while owning the practice and it also applies for when you are looking to sell. When you are able to maintain a reliable customer network, it shows the buyer that your practice can sustain itself.
Finding the Right Buyer
You may be reading this and wondering once you’ve completed all the steps above – how do I find a buyer?
There are a few ways to find the right buyer. You can either rely on the connections you already have and network with people who are in the position to buy your practice, those that have the experience and financial capability. Or delegate and find a broker, they can be a huge help. Brokers understand the market, already have the connections, and know how to advertise your practice. Not only can they help you find the right buyer, they are able to help you through the buying process. Which can be intimidating and overwhelming. Brokers do take a percentage of the sale but they sometimes are able to make you more money when it comes to negotiations. Overall, it is your choice on how you want to find the right buyer! I suggest if you have someone in mind or know where to find potential buyers then to give it a shot. The worst that can happen is you realize you would like the extra help.
Negotiating the Sale & Finalizing the Deal
Hiring a lawyer during the sale process is something I highly recommend—especially if you don’t already have one. It’s essential to have legal expertise reviewing the structure of the deal and the terms of negotiations. A lawyer will ensure that the language is clear and that nothing important is overlooked or misunderstood. They’ll also help you identify any areas of the deal that you may want to modify.
Another critical step is understanding your practice’s value. One way to assess this is by using the EBITDA formula (Earnings Before Interest, Taxes, Depreciation, and Amortization), which helps you calculate your practice’s financial worth. This is a key figure potential buyers will look at during negotiations. If you would like a more detailed look at how to use this equation to determine your practice’s value, take a look at my course From Start to Finish: Selling Your Business Successfully where we take a closer look and really break it down.
As soon as you start the process of selling, you’ll need to sign a Non-Disclosure Agreement (NDA). The selling process can take anywhere from six months to a year, and during this time, you’ll want to keep all details private. Just like in home buying, deals can fall through at any point, so it’s important to have a trusted broker or consultant, like myself (click the link to be directed to my scheduling page for a free 15 minute discovery call!) , to guide you through this emotional and sometimes isolating experience. Having someone experienced on your side can help keep things on track and ensure you’re making the right decisions along the way.
Transitioning the Practice
Once you’ve reached the point where the sale is official and the practice is being passed on to the new owner, clear communication becomes crucial—especially with your clients. You’ve built relationships with your clients over time, and trust is key in these sensitive fields. Crafting the right message is essential to ensure that your clients feel secure and understand the transition. Humans generally don’t like change, and when it involves something as personal as mental health, it’s even more important to handle this carefully.
Alongside client communication, make sure your staff feels calm, safe, and informed during the transition. A smooth handoff to the new owner will depend largely on your team being well-prepared and confident in the process. Transparent and open communication is essential here. Keep them updated about what’s happening, and make sure they understand their role in the transition. When your staff is clear on the process and feels supported, they’re more likely to adjust well to the changes and continue providing excellent service.
Final Tips –
Lessons Learned from Successful Sales
There’s no need to reinvent the wheel when others have already gone through the process. Finding mentors or colleagues who have successfully sold their practices can be an immense source of comfort and guidance. Hearing how others navigated the sale will not only help you feel more prepared but will also provide you with valuable insights into leading your team through the process. If you would like to learn more about my practice selling journey
Take a Course on Selling Your Practice
If you want a deeper, more structured understanding of the sale process, taking a course on selling your practice can be an incredibly useful investment. These courses are designed to equip you with all the knowledge you need, breaking the process down into digestible steps that make it easier to follow. There’s a lot to consider when selling a practice, and it’s almost impossible to remember everything on your own. A well-designed course will cover everything from the financial details to client communication, offering a roadmap for success. Check out mine From Start to Finish: Selling Your Business Successfully. By walking through the process with expert guidance, you’ll feel more confident and prepared for what’s to come.
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