Valuation Process
We provide owners of Healthcare companies or practice valuations for many purposes, such as mergers & acquisitions, buy-sell agreements, bank financing, and other disputes.
Research Preparation
Selling a physical therapy practice is an arduous process. Therefore, it is important to ensure that research and preparation has been done properly so that the selling process will go as smoothly as possible. It's important to understand what types of physical therapy practices are in demand, how much they usually sell for, and if there are any current trends that may influence a buyer's decision.
Contact
When it comes to buying a physical therapy practice, contact with potential partners is essential. Knowing the answers to key questions - such as who to contact, what processes or protocols need to be followed in order for negotiations to move forward, what message you need to deliver and what NDAs are necessary - will give you a great start by ensuring you can establish trust and understanding with your contacts. It's also a best practice to know who the gatekeepers or decision makers are.
Discovery
When a potential buyer is seeking to purchase a physical therapy practice, the discovery process is an important step. It begins with answering questions such as whether the buyer is serious and can complete the transaction, if the fit between buyer and seller meshes well, what deal structures they prefer, or whether they are actual interested in acquiring the practice. After this information has been gathered and analyzed, it allows the buyer to assess whether it makes sense to move forward by making an offer.
Negotiation
Deciding who makes the first offer is essential, usually when selling a business it tends to be the seller who does this and this then opens up discussions between both parties. Ensuring who drafts documents such as letters of intent must be discussed and once accepted, control then lies in understanding due diligence limitations and the staging of an auction should someone decide to bid on the practice. Once you have gotten through these steps, it’s then time to address payment schedules and closing agreements to ensure you have made a successful purchase.
Due Dilligence
Good preparation is the key when it comes to due diligence for buying a physical therapy practice. Establishing a data room is an important step to take as it allows both parties to know what documentation will be necessary and available before the process begins. Various levels of due diligence must also be performed, such as examining history and establishing cash flow, to ensure that all potential liabilities are caught and addressed. Questions may not go much further than this, but any professional working on the definitive agreement should have outside opinions available if needed. Being conscious of where deals die during the due diligence process will help make sure all safety measures are taken and understood so that successful transactions may be completed moving forward.
Closing
When closing on the purchase of a physical therapy practice, it is essential to understand and be familiar with the various aspects that need to be finalized before closing. Final reps and warranties provide certainty for both parties about what has been agreed upon in the contract regarding representations and warranties. Escrows and holdbacks are often a necessary part of the closing process from both a security perspective, determining payment schedules, and looking into any regulations as they vary by jurisdiction.In order to minimize upset after closing, address all issue promptly prior to the deal being finalized.
Integration
Buying a physical therapy practice can be a complex and tedious process, so when integrating such practices, it is important to plan ahead. Determining synergies between the two entities requires an organized evaluation of financials and operations, as well as an understanding of the potential benefits that could be gained from a merger. Furthermore, implementing best practices such as corporate governance and operational policies ensure organizational stability during the transition process. Once all aspects of integration are addressed, it is key to set up monitoring and reporting protocols in order to properly assess results over time. Failure to do so can lead to detrimental outcomes, which we help avoid.
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Contact us to see how The Fieldmaker Group can put our proven process to work for you.
