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Re: Exit Strategies

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,

The Private Practice Section of APTA has a new manual on exit

strategies which will be available shortly. Call 1-

for availability.

Elmer Platz, PT

APTA-PPS Board of Directors

From: PTManager [mailto:PTManager ] On Behalf

Of Zerr Summit Physical Therapy

Sent: Wednesday, January 09, 2008 7:56 PM

To: PTManager

Cc: Ellen

Subject: Exit Strategies

What strategies would you suggest for a sole practitioner that wants to sell

their practice? I've seen the PTPN web-site, but that seems too expensive -

$500 / month to advertise. I've read the APTA's stuff too on exit strategies

but didn't get much out that.

I'm looking for practical ideas on how to market my practice to other

practitioners. I'm not necessarily trying to sell for a 1 to 3 x's our

annual profit either. Just looking for a quick transition easy for both

buyer / seller.

--

Zerr,PT

Tempe, Phoenix, Arizona

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  • 8 months later...

I am also in the same boat as I have been in private practise for 22 years. I

have contemplated selling one of my older clinics, however, now would not be the

right time to sell as the price would not reflect the true value of the

practise. Of course, if a true buyer steps up I will be willing to re-think my

sales position.

Hiten Dave' PT

-------------- Original message --------------

Have a quick question for the group. Given our current economic

problems, are any larger companies still in " acquisition mode " ? I

have been in private practice for over 20 years and beginning to look at

exit strategies.

Thanks,

Joe Durham PT, DPT, OCS, MSHA

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Josh,

Yes, I have had quite a bit of interest from large firms in buying

small clinics.

Get a broker - you pay based on the transaction amount, the broker

pays for the marketing and solicitation up front.

The larger your clinic the less you should pay in percentage.

I recommend 10% for a commercial broker for practices up to half a

million. Don't contract with a residential broker who 'sidelines' in

commercial or business brokerage. You get what you pay for.

The broker usually get paid at closing based on the transaction amount

but sometimes you may have to finance part of the sale (especially in

this market) - try to make the broker's commission contingent on a

cash sale.

Avoid payment in stock - many large firms will want to pay you with

shares of their stock which you then have to sell to get cash. You

pay transaction fees when you sell stock.

Be prepared to stay on for a year or more at your clinic to fully

'earn out' the sale price. Large firms need your local knowledge to

continue operating the clinic after you sell.

Good luck,

Tim , PT

timrichpt@...

www.MedicalArtsRehab.com

>

> Have a quick question for the group. Given our current economic

> problems, are any larger companies still in " acquisition mode " ? I

> have been in private practice for over 20 years and beginning to look at

> exit strategies.

> Thanks,

> Joe Durham PT, DPT, OCS, MSHA

>

>

> [Non-text portions of this msage have been removed]

>

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