If you are wondering how to increase your chiropractic practice sale’s attractiveness and value, we’re going to try to give you the most simple and direct route to get to your desired destination.
After all, there are a lot of metrics you can run in relation to your chiropractic practice sale:
- Patient visits.
- Net profits.
- Patient visit average.
- Dollar per visit average.
- Number of monthly new patients.
- Case average.
- Percentage of collections.
- Accounts Receivable aging.
All these can be good indicators of practice health and help a buyer determine how attractive your practice may be. All can help with how to increase your chiropractic practice sale’s attractiveness and value. Many of these can help a bank decide if they want to lend money to your buyer to finance a purchase.
In addition to numbers, there are other factors that can influence a Buyer’s decision to move forward with your practice sale that are related to some of the features or equipment of the practice:
- Digital xray (or any xray on site)
- EMR
- Laser
- Spinal Decompression
- Complimentary services such as massage, acupuncture, rehab
- Shockwave
- Weight Loss
- Condition / Layout of your building
There are also “niche” features that help increase your chiropractic practice sale’s attractiveness, value and help you position your practice to standout from others:
- The “only” clinic that offers…
Beyond your practice, there are other metrics that can be meaningful as well, especially in relationship to where your practice is located and the surrounding competition:
- Traffic count surrounding your office
- Growth patterns of your local area demographics
- State ranking in terms of net migration.
- Affordability of housing in your area.
- School rankings.
- Number of chiropractors in the area.
- Website rankings.
- Online reviews.
GET IN YOUR BUYER’S EYES
The number of features, factors and figures can be overwhelming – especially if you are looking to increase your chiropractic practice sale’s attractiveness and value
In fact, the lists above are not even exhaustive, as there are other elements that can also position your practice in a positive light.
Certainly, if you could arrange your practice to have all – or as many as possible – of these factors, this would be ideal.
But most of us don’t leave on planet perfection.
Here’s what to do if you want to make the biggest impact with the fewest factors:
Look at how your buyer sees the practice and focus on what they see as most important:
FOCUS ON GOOD, BETTER, BEST
While every buyer will have their list of “wants,” most Buyers take a very simplistic look at your business.
Here is the list of three things that most buyers feel they “need” in order to consider your practice for purchase:
- If they see patient visits going up, that's good.
- If they see collections going up, that's better.
- If they see net profits going up, that's BEST!
NEXT STEPS
If you really want to dial it in, work the best first – focus on getting your net profits up. That looks great regardless of how many visits.
Collect a lot, profit a little? Not so good. But turn it around and you’ve got a winner.
So in the rush to fix everything. Really, I’d focus on fixing ONE thing – your profits.
Without excellent profits, the best looking, most equipped clinic will look like a shiny turd.
With excellent profits, even a clinic with a few dents or scratches, suddenly has big potential.
Work on the profits. And if you have extra energy – then tackle other items on the list.
Want help evaluating your practice’s worth or getting your practice on the market to sell?
Schedule a FREE, no-obligation call to discuss your situation today!
Or to learn more, watch one of our FREE Online Training Videos on making the most of your chiropractic practice sale!
