We can make it easier for you.
Buying another practice
Takes a lot of time, attention, and resources.
First, you must assess your own practice to determine your preparedness for an acquisition (capacity, operations, financing, and more…). Then you need to identify a list of potential practices for sale.
Next comes your due diligence on each prospective purchase:
- Will their culture fit with yours?
- What’s their vision for the sale?
- What are their financials?
- Can your cash flow handle the purchase?
- How will your current clients be affected?
Once you’ve zeroed in on a target, you submit a bid and work through the terms of the deal. You want the best deal for yourself, but you want the seller to come out feeling good as well.
When your bid is accepted, then you begin to work through the legal aspects of closing the deal.
Finally, you will need to integrate the new practice into your current practice.
- Who will service which clients?
- What will the new corporate structure and hierarchy look like?
- How will retained team members mesh with your current team?
- Can you handle the increased burden?
If this sounds like a lot, it’s because it is, especially if you’ve never done it before.
Consider these questions – are you prepared to acquire a practice?
- Why do you want to grow by acquisition?
- What specific qualities and criteria are you looking for in a practice?
- Have you considered the potential risk involved?
- What are your worst, more-than-likely, and best case scenarios?
- Have you evaluated your practice to determine your capacity for new clients?
- Do you possess the skill set and drive to lead a larger practice?
- Have you built out a current and future org chart to plan for growth?
- Have you run forecasts to identify the best scenarios and avoid financial disaster?
- Do you know the value of your own practice so you can understand the drivers to increase equity?
- Do you have relationships with several lenders who can help you?
- Have you done a deep dive on the rules and requirements from your broker-dealer?
- Have you scripted your value proposition and built a prospectus for sellers to show why you’re the best candidate to buy their practice?
Have you put together a plan to network and communicate with potential sellers?
Need help? We can guide you – just fill in the contact form below and we’ll talk!
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“Our investment in coaching with D2 initially helped our team to appreciate our value to clients and to raise pricing and productivity while instilling the confidence to make strategic investments in staff and infrastructure to create a platform for growth.
Travis and the team have also been instrumental in working through staff challenges and offering a la carte advice to address growing pains and to make smart decisions around investments and practice acquisitions.
– Randy Perkins, CFP®, CRPC™, Private Wealth Advisor, Perkins-London Wealth Advisors
East Meadow, NY
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