When considering buying a chiropractic practice, here's why your search is not like looking for a house.
Many chiropractic buyers make the mistake of thinking that a practice purchase is a bit like searching for a house. While there are some similarities, here are some key differences:
1. Most Practice Sales are CONFIDENTIAL, Few Home Sales Are
99% of Sellers want their sale to remain confidential from patients, staff and even DC colleagues. It's in their best interest - and yours as potential buyer - for this too. If patients find out their doctor is selling, they may leave (before they meet you). Staff fear the sale too because they think they will lose their jobs (when in reality most buyers will keep the staff). Neighboring DCs may just be nosy - but they can also spread rumors that can impact the practice. For sall these reasons, sales are kept confidential and there's no "open house" and the procedures are a little different.
2. No Anonymous Buyers
In real estate, you look at the Multiple Listing Service (MLS), see pictures online, tour the house and discover all the details online prior to even looking at the house in person. You, as Buyer, are pretty much anonymous in the process because other than the fact that you need the money to purchase, who you are personally is less important. In fact, there are even laws against housing discrimination. In practice sales, YOU are actually a very important piece of the puzzle. You are the one who will replace the Selling doctor, you will be seeing the patients and your personality, technique, volume and timeframe matter a lot to the Seller. In fact, 90%+ of Sellers want to know a bit about you before even moving forward to consider you as a possible buyer for the practice. Â
3. The Fair Exchange
We understand that you want to know details about the practice, but because of what we've just discussed in #2, the Seller wants to know details about you too. Some Buyers understand that there is an "exchange" that goes back and forth in the search process. You inquire about the practice, get a little info; the Seller inquiries about you and gets some info. Most Sellers want to set up a call and "meet" with you via phone, before meeting with you at their office for confidentiality purposes. Also, in exchange, the Seller is going to keep your information confidential and not call up your current employer to let them know you are seeking to purchase a practice elsewhere.
Avoiding Miscommunications
For purchase and sale discussions to professionally move forward, it's essential that both sides avoid miscommunications.
Occasionally, Buyers don't understand the above principles or relate their search to real estate. They demand to see the Seller's stats, financial information and even very personal or sensitive information like tax returns before they move forward or speak a word about themselves. Some Buyers are downright rude or demanding when asking for this information, which certainly will not endear you to the Seller.Â
Remember the exchange. We understand that you will need all this info (eventually) in order to make a sound buying decision.Â
But please understand that UNLESS the Seller thinks you are a good fit for their practice (this may be in personality, technique, timeframe and/or even financially) there's really no reason for them to move forward with too many details.
In the end, it's really about creating a win-win situation from the start. And it starts with an understanding of each other's perspective, a sharing of information and moving forward towards a mutual goal.Â
Think About Your Future
One last thought or reminder to Buyers is this -- think into your future sale. Would you want to put 40 years of energy, effort, time and tender loving care into your practice only to have someone refuse to disclose helpful information while attempting to purchase the practice? Wouldn't you want to speak to your buyer or meet them to make sure they are a good fit? Treating the Seller (and your future Buyer) with the same care, concern and respect that you give your patients will ensure that your future purchase, sale and transition all go well - no matter which side of the fence you are on!
LOOKING FOR A PRACTICE? Here's help! Check out our current chiropractic practices for sale.
