Are you ready to sell your practice? What to expect before and after you close the deal

Emotional and financial preparation for pre- and post-sale fallout

EXPERIENCE THROUGH MANY DECADES OF ASSISTING chiropractors selling their practices has provided much insight into the emotional and financial aspects which must be considered in preparation for life’s next journey.

Selling a chiropractic practice built over many years, even decades, involves deeply held emotions and accurate financial considerations. You’ve invested a significant amount of time, effort and motivational purpose in creating a business that not only has brought financial security for your family and you personally, but has also created a tremendous sense of fulfillment and deep connections to your patients and staff. So when the time has finally come to say goodbye to that stage of your life, a wide range of emotions and a detailed financial analysis will play a large part in your decision to sell.

Pre-sale preparation

Once the decision to sell your practice has been made, one must deal with the attending emotions regarding the same. Before coming to that decision, all the psychological aspects of the sale must be carefully considered.

How will you feel knowing this part of your life will be over? In many cases, post-sale emotions can include depression, sorrow, isolation, melancholy and a distinct lack of purpose. If the DC has practiced for many years or decades, these feelings can be quite overwhelming. Not going to the office and having the days planned and structured in terms of what needs to be done as far as tending to all the various duties in running the practice can create a void in your life.

Having a comprehensive exit strategy months before the actual sale takes place is imperative. Part of the plan will obviously involve your family members as the practice has also been a major part of their lives too and like you, will need time to adjust to the idea of another doctor taking over your business and adapting to the day-to-day change of your new daily routines.

Remain focused

During this pre-sale process, before the asset and purchase agreement is executed, and the closing of the sale and practice transfer have occurred, you the seller should remain focused on continuing to operate the practice in the same way it has always been done, since deals at this point in time can fall through for various reasons.

Proper personal introductions of the buyer to each of your active patients and letters being sent to all patients seen over the last 5-10 years are also a vital part of the practice transfer process. It is totally necessary that your staff and patients feel secure and welcoming to the new owner. The new doc should be able to duplicate your consultations, reports of findings, techniques, bedside manner and business protocols to facilitate a smooth practice transfer.

During the pre-sale period, it is important to rely on third-party advisors, including brokers, attorneys and accountants. These third-party advisors can help bring objectivity to the sale process and make sure detrimental emotions of both the seller and buyer won’t “kill the deal.” After this pre-sale period has passed is when you need to begin seriously planning your “new” daily life, so to speak, as it won’t involve being a practicing chiropractor running your own business any longer.

Hopefully before the transition has ended, you (the selling DC) will have formulated a solid plan for what you will do after the sale is finalized and you enter the next stage of life. At some point in the exit planning process, you will need to seriously consider how you will spend your time after the sale has been finalized. Sellers who lack a solid plan for the next stage of life can find it difficult to let go of their businesses and are more likely to allow personal emotions to hijack the sales process.

The first 4-6 weeks post-sale should go smoothly as you transition all clinic duties to the new owner and introduce all clinical and business aspects of your practice.

Prepare for post-exit

Even if you enter a new type of business, more than likely, you will no longer be earning the same income you did while in the most productive years of operating the practice. Recognizing this post-exit reality can bring on those feelings mentioned previously like lack of purpose, depression, isolation and lower self-esteem.

Hopefully your finances are in order, and good investments and savings have been accumulated to help maintain the lifestyle you have become accustomed to. If “you” as the seller have to cut back on some more lavish spending you enjoyed during your career, it should be accepted and even welcome. Post-career life can be a joyful period: spending more time with family, travel, hobbies, participating in sports, volunteering and just relaxing.

GREGORY M. KINGSBURY, DC, is a licensed doctor of chiropractic and president of ChiroEquity, a practice brokerage assisting sellers and buyers of chiropractic practices for over 37 years. He graduated from Palmer College of Chiropractic in 1975, and currently lives and operates his business from New Providence, N.J. He can be reached at chiroequity.com, greg@chiroequity.com or 908-419-7510.