We are getting a ton of inquiries regarding Chiropractic Practice Sales and COVID Vaccine Mandates, Masks & More — so I thought we’d address this topic that is obviously on the minds of many DC’s of all ages and on both sides of the fence.
NOTE: This is not a political discussion, nor a medical debate on the merits or risks of the COVID19 vaccine, on various state vaccine mandates, on the subject of masks or anything like that. Today, I’m focused on simply answering a few questions for you on what to do if you are considering a chiropractic practice sale during these unprecedented times to hopefully help with your decision-making.
The basic question from most chiropractors revolves around Chiropractic Practice Sales and COVID Vaccine Mandates, Masks Requirements & other measures which may cause chiropractors to question whether this is a good time to sell or not. So let’s just take them one by one and discuss the scenarios from you, from our perspective as chiropractic practice brokers and what we’re seeing in the marketplace. Here are the most common questions that are hitting our inbox lately:
Q1: Are chiropractic practice sales and COVID Vaccine Mandates, mask requirements or other measures going to impact my chiropractic sale?
A: The easy answer is YES. The surprising answer may be — that the Covid vaccine mandates, mask requirements and other realities of practice today are not going to kill your practice sale. The fact of the matter is not everyone is willing to move or able to move, so buyers will continue to purchase practices in your state regardless of how challenging the state atmosphere may be.
Q2: if everyone is leaving, will it be impossible to sell a chiropractic practice in my state?
A: First, everyone is not leaving. Certainly chiropractic practice sales are impacted by Covid vaccine mandates, mask requirements and other factors that may be going on in your state, but the news is primarily position to get your attention so that you can focus on their programs in their advertisements. Hard facts unfortunately seem to be lost these days and the easiest hype to dispute is the fact that “everyone” is leaving. There are “high demand” states where more people are migrating to, but the good news is that even if you live in an area where people are leaving, there will still be chiropractors who will stay and will buy. Perhaps the best news of all is a simple reminder that you do not need to sell your practice to the masses, you only need one buyer!
Q3: Are chiropractic practice sales happening right now with all the COVID Vaccine mandates, mask requirements and uncertainty?
A: YES! The market place has a lot of activity right now both from a buyer and seller standpoint. Obviously chiropractic practice sales in Covid vaccine mandates are concerned for many, but that’s not the only factor that is contributing to the market. Interest rates are low, entry requirements for getting loans are low and many buyers realize that this is a great opportunity to purchase a chiropractic practice.
Q4: Is this a buyer or sellers market right now?
A: Interestingly enough, the 2021 marketplace has elements of both. Because interest rates are low and entry requirements are also low, many buyers are able to get a loan to purchase now whereas a few years ago they may not have been able. That combined with the fact that there are more buyers on the market looking to purchase a practice they can provide them a significantly better than most associate employment opportunities contribute to the criteria for a sellers market. On the other hand, the number of baby boomers looking to get out and transitioning toward retirement has put a lot of sellers on the market place. Obviously an abundance of sellers would contribute to a buyers market. On top of all that, we’ve got migration patterns were both buyers and sellers are looking to get out of some states and into others. Well this all together and you really don’t have either a buyers market for a sellers market. But what you do have is a very active market which means it’s a good time to buy or sell!
Q5: What can I do to improve my success in selling my practice at a time like this?
A5: The three biggest things you can do to increase your chances of selling your practice and maximizing your value are as follows:
- Focus on Revenue — the primary driver of value in your practice is profits. Making sure your revenues are up and your profits are up will go way to making your practice both attractive and valuable.
- Plan ahead — one of the most challenging aspects of selling your practice is trying to sell it quickly. Many sellers assume that because the real estate market has houses going quickly and hours days or weeks at the same will happen for their chiropractic practice. This is simply not true. The chiropractic market place is so much smaller than the real estate market place. Essentially anyone come by your house as long as they can afford it. But the primary buyer for your chiropractic practice is going to be a chiropractor. That one simple fact limits the market size tremendously. So you must allow enough time to sell your practice. The typical chiropractic practice I was going to take about 9 to 12 months. I’ll track record is better and faster than that, but it’s never hours days or a couple weeks! So plan ahead!
- Price your practice properly — the biggest mistake many owners make when they attempt to sell their practice by themselves (without professional help) is that they overprice the practice and scare away potential buyers. The process is long enough, but if you want to prolong your sale, having your practice priced significantly above fair market value will certainly cause you to take much much longer to sell (if you can sell at all). The best way to avoid improperly pricing your practice is to get a chiropractic practice valuation from a professional with experience in chiropractic practice sales. Yes, your CPA or accountant or “general” business broker may be able to appraise your practice, but if they have little or no experience with chiropractic practice sales, their figures can be way off (too high or too low). They may be able to accurately value a florist, restaurant or dry cleaners but that doesn’t matter to you — your practice sale depends on an accurate value of your chiropractic business!
MORE QUESTIONS – NEED MORE HELP? Check out our FREE webinars on the topics of your chiropractic practice sale. Or shoot us an email — info [at] strategicddc.com and we’d be happy to help you take the next step!