Is your chiropractic exit strategy based on freedom? Despite the fact that many other factors get all the limelight in respect to your practice sale or transition, let's talks about a chiropractic exit strategy for FREEDOM!
After all, we're celebrating Independence Day this July, what better time to talk about freedom in respect to your practice.
WHAT IS CHIROPRACTIC EXIT STRATEGY FREEDOM?
Certainly, you hear about chiropractors who are forced to sell because of health issues, disability or even death. Obviously, since none of those routes are really driven by your choice, those are not planned exit strategies based on freedom.
Also, it’s common to see chiropractors sell their practice to relocate to a different part of the country - which may or may not be based on freedom.
And, of course, a big reason that many chiropractors choose to sell is to retire.
But beneath the surface of many successful sales and exit strategies is FREEDOM.
Is Your Chiropractic Exit Strategy Motivated By FREEDOM?
Our forefathers founded the USA based on their desire for freedom from burdensome taxation, for the freedom to worship God, for freedom of speech, freedom of assembly and other principles that they deemed a fundamental right as citizens of any country.
Similarly, many chiropractors desire freedom from the burdens of practice.
Some of these DCs love seeing patients, but hate the administrative or management hassles of running a business.
Others enjoy practice, but would like the freedom to take more time off to be with family or to travel.
Still others want the flexibility of pursuing another business interest, but find that it’s difficult to achieve while owning a practice.
These chiropractors all have a basic desire for freedom in one aspect or another – and a practice sale can enable them to achieve it.
3 Basic Exit Routes to Chiropractic Freedom
- Sell the Practice and Leave. This is the most common exit strategy and works well for chiropractors who are prepared to pursue freedom outside of practice. The Owner sells the business and after a brief transition period, exits the practice. This traditional sale option is clean and simple, provides the Seller with sale proceeds to move on to their “Second Act” and the Buyer to replace and succeed them in caring for their patients.
- Sell the Practice and Stay. This option has been increasing significantly in popularity over the last few years and involves the Owner selling the practice to the Buyer; but then staying on and working with/for the buyer for an extended period of time beyond the typical transition. Frequently, the Seller will work a reduced schedule which allows most patients to freely flow over to the Buyer but also provides an extended period of time for patients to do so. This also allows the Buyer to have an extra income source as they profit from the Seller’s production and allows the Seller to generate additional income beyond the sale (as they are paid for their services working for the Buyer). For Sellers who enjoy seeing patients but are tired of administrative or management duties, this is an excellent option. And it also serves Buyers who may want a built-in vacation doctor or experienced DC “in-house” to help them transition into the management role.
- Associate Timed Sale: This option allows the seller to stay in the practice and run the business while signing an employment agreement with an associate for the period of time between joining the practice and the sale date. At the end of this period, the associate will purchase the chiropractic business. Although this option sounds like the best of both worlds, it can be challenging to navigate because the Associate and Owner need to have built a measure of trust and compatibility before this can be a serious consideration (which is also why timed sales frequently fail for “outside” buyers who have never worked in the practice before. Additionally, the timing of the sale has to be right for both the Associate (in terms of their ability to purchase) and Owner (their readiness to sell and exit). And then, of course, the Buyer and Seller have to agree on a fair price for the business, taking into account the fact that the Associate has already worked in the practice (and has already been paid to do so).
Of course, there are other exit strategies that could also provide you with a measure of Freedom in your practice, but these are the most common.
NEXT STEPS
Just as the USA was not established overnight and was the result of much planning from the founding fathers, to maximize your freedom, you will need to prepare and plan ahead as well.
The first step is typically to determine the value of your chiropractic practice which can help you determine IF you are ready to exit, WHEN the proper timing would be for you and WHAT your best options would be. Check out one of our FREE, ON-DEMAND VIDEOS to learn more about your exit strategy options, timing and how to position yourself for a successful sale.
Or, if this is the time you are desiring more FREEDOM in life and practice, we’d be happy to discuss your situation, help you determine your practice value or take the next steps towards a chiropractic practice sale – contact us today to get started!
