One rule doesn’t fit all
In the real world there is no simplistic one-size-fits-all rule that can be applied to the prices that audiology businesses achieve on an open market basis. No two practices are exactly alike and we would advise that, whatever an accountant tells you, the true worth of any practice boils down to what the buyer is both prepared and able to pay. The good news is that with planning, preparation and good presentation and marketing it is possible to maximise the price likely to be achieved and to avoid some of the numerous and potentially expensive pitfalls of practice transfer that lie in wait.
Many audiology businesses consist of more than one branch and in many cases the individual parts may be worth more than the sum. It is almost always worthwhile carrying out a branch by branch analysis and taking expert advice as to the best way to exit.
It’s not all just about the headline price either, it’s also about people’s ability to fund and deliver on their interest. Sometimes parties may be prepared to offer a high price for a practice, but on more risky payment terms or with certain future trading preconditions. If not handled correctly, this sort of offer can be a gamble and whilst the headline price may seem attractive, the actual monies received may be quite different or scheduled over a much longer period of time. This can have significant tax implications and of course restricts the seller’s ability to reinvest the capital straight away. Whatever the situation a vendor will need to factor in the tax implications of the sale; again early thought and planning here can save a considerable amount of money.
The sale of a practice often equates to a lifetime’s work and the handling of the valuation, exit planning, marketing and sale of the business cannot be entered into lightly. Vendors often quibble at the commission charged for selling their practice but the crucial factor is the amount that they walk away with in their pockets. After all, wouldn’t it be wise to pay £5,000 commission if it was going to result in a sale which realises an additional £50,000 over an existing valuation? Dealing with experts can save you time, money and hassle and ultimately add value to the sale price, which is surely the most important aspect to consider when selling your practice. Choose your advisors wisely, ignore flippant sound bites and empty promises and remember that in the long run you always get what you pay for.
Want to find out more?
For more information or for confidential and straightforward advice about buying
or selling a practice call us on 0161 929 8389 or 07788 996505.