FAQ's: How to value your physiotherapy practice for sale: How to get help valuing, buying or selling a physio practice or clinic?
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How do you value a physiotherapy practice or clinic?
Salaried physiotherapists who are employed by say the NHS deliver a clinical service make important decisions on the running and direction of the service but never have ownership of the business. When you stop practising or retire then that's it! In the world of private business development (which includes private physiotherapy service provision) this is entirely different. A physiotherapy clinic or practice owner may run their business as a sole trader or partnership hut more commonly as a limited company. They still own the shares even when they decide to stop working so have an asset within their business. There are two components to valuing a physiotherapy business. Firstly are the fixed assets of the business. Typically these reduce by a fixed 25% depreciating value each year however there's always tables, benches, office equipment, laptops and computers, websites and servers that are owned by the practice and contain inherent value. There are typically valued at the book value on the last set of accounts.
The second element of the valuation is the goodwill of the business. This essentially is the reputation of the business and the ability for it to continue bringing in clients and generating turnover and subsequently profit. There are many different methods of valuing the goodwill. We use 2 main methods and we are very happy during a practice valuation and business appraisal to talk you though these.
How do you market a physiotherapy business?
Any one can say they are going to market a business but in this industry you need to know where to throw the bait in order for the fish to bite. If you market the business to the wrong type of individuals you will get no real interest. We keep our marketing focused and targeted. The fact that you are reading this article about the physiotherapy practice/clinic sales process means hundreds if not thousands of others have already been here. As a result we have many registered buyers who are waiting for the right practice to become available and we communicated with them whenever we have a new practice that we take to the market.
How do you sell a physiotherapy clinic or physiotherapy practice?
Once we have carried out a market valuation we will have a recommended value for your business. Once you approve this figure we will then draw up a sales memorandum. This is a confidential document that gives interested buyers the essential information about your business. We will market your practice on our website and other marketing websites and trade journals. We will also distribute new physio clinics and practices to our registered buyers. Normally we will generate immediate interest and if we don't it's then a waiting game. Once we have interest expressed from a potential buyer we will screen them and only pass on those serious buyers who have the finances and ability to purchase your business. We also get all potential buyers to sign a confidentiality agreement so they cannot use or disclose any sensitive information that they may find out about your business. Once we pass their details onto you we recommend a short 45 minute face-fitting meeting. It is best to hold this off site so not to draw attention to your clients or employees. The purpose of this initial meeting is to see if you could do business with this individual and if they will fit into your business. If the answer to this question is yes then we recommend a viewing of your practice normally out of clinical hours so the potential purchaser can see for themselves how you operate. At this stage it would be expected for you to provide them full access to the last 3 years full accounts. At this point if the buyer is still interested then they would make an offer for your business through us as your agent. We would then help negotiate a satisfactory price and legal arrangement for the deal to proceed based on your agreement. Once you agree a heads of terms agreement would be drawn up by your solicitor and signed. Both parties would then leave their respective legal advisors to draw a contract and once agreed by all parties they can be signed and the deeds/shares and money transferred. This concludes the deal. If required we could recommend to you appropriate legal or financial representatives who could help you through the due diligence process.
How can you help me achieve any or all of the above?
Do you own or run your own physiotherapy practice, clinic or business? Are you looking to grow, add to your client base, acquire additional practices, develop a UK national brand? Are you looking to sell and release some equity from the valuable asset that you have spent time developing?
There are numerous reasons why one would either want to buy or sell a physiotherapy practice. Regardless of your reason you will need help to value, appraise and market your business to those who may be interested in acquiring your business. To find out more about how we can help either drop us an email or give us a ring. All discussions are confidential and carry no obligation to use any of our services.
We can give you a market valuation of your practice/clinic, take your business to market and guide you through the potentially complicated sales and negotiation process. We can introduce sellers to appropriate legal expertise and recommend sources of funding to prospective buyers. Contact us for more details about our confidential and professional service. If you are worried about speaking with a general business broker then don't with us. Our physiotherapy practice sales team is lead by an ex NHS and private physiotherapist. As a result we know how your business works and can understand the clinical aspects of your operation. You won't get this with any other broker. This is why we are the UK's market leader for the sale of physiotherapy practices and clinics. We also now offer a free business appraisal and valuation service which is completely confidential and carries no obligations on your behalf.
Thinking of selling: Express your interest via our online physiotherapy practice/clinic vendor-seller registration form
View our advertised physiotherapy practices for sale
