Having an exit strategy is vital in any industry – including healthcare. Whether you’re looking ahead to retirement or are weighing the pros and cons of acquisition or expansion, you’ll want to ensure that your medical practice valuation is as high as possible. Here’s what to consider in both the long and short term.
Have a Solid Business Plan
A detailed business plan that takes into account opportunities for growth, acquisition, and succession is a must. Acquiring firms or medical professionals will use this document when considering purchasing your practice – and so will lenders if you’re looking for a cash infusion. Work with a strategist and a CPA to make sure that you’re building a sustainable practice that anticipates and can respond to market trends and shifts. Having access to robust electronic health records and accounting systems will also help you gauge the value of and possibilities for your practice.
Develop Your Niche
In healthcare, medical professionals often are the product being sold. Your practice increases in value as your reputation, expertise, and experience grows, so double down on your unique selling point and focus your marketing accordingly. If you specialize in a particular area, become the leading provider in that specialization. If there’s a particular part of your offer – such as technology, location, or treatment method – that sets you apart, continue to invest in that. You’ll be able to bolster your patient base and develop a name that will appeal to acquiring firms or practitioners.
Make Data-Driven Decisions
More isn’t always better. Before you invest in new technology or a lease on a second location, examine your records and accounts – and run simulations that give you insights into anticipated ROI over particular time horizons. Depending on how far ahead you’re looking, certain investments might not be the right choice for now, while others might give your practice the boost it needs to become highly competitive in the eyes of investors. For example, a high-tech but highly leveraged practice might be a warning sign for investors in the short term, whereas a profitable practice showing incremental but thoughtful growth might draw more offers.
Reinvest In Your Premises
Curb appeal matters – and in the experience-focused world of modern medicine, so does the look and feel of your practice’s interior. Invest in regular maintenance and key updates so that your practice doesn’t court the dangers of deferred maintenance. If your space is leased, talk with your landlord about essential improvements with high ROI, especially if you’re looking to renew or renegotiate your lease. If your space isn’t reflective of the high quality of care you deliver, consider moving somewhere better suited to your healthcare offer. Whether you’re leasing or buying, always work with real estate professionals to ensure that you’re getting the best possible terms.
Talk to the Pros at GZ
Your real estate situation is crucial to the value of your practice. At Gittleson Zuppas, we specialize in medical realty and can help you find the ideal space for your situation – helping you live out the promise of your business plan, and giving your bottom line the boost it needs when you need it most. Whether you’re looking to expand, scale down, or just negotiate a lease in your favor, we’re here to help. Get in touch with our friendly team today!