Practice Brokerage

- Medical & Professionals -


Value = Income x Risk
Professional business brokerage utilizes key financial and operating attributes of the selling business to initiate the brokerage process. The broker's initial service is to promote the availability of the business for acquisition - then to qualify prospective buyers. An objective of the brokerage process is to maintain confidentiality during the exchange of proprietary information. A successful sale integrates tactful negotiating, addresses tax positions, and leverages creative deal structuring into an arm's length transaction accaptable to the seller.

Brokerage for Sellers of Professional Practices

The Brokerage Process
Seller Tips & Techniques
Primary Objectives

Seller Tips and Techniques

If you are a seller, then consider adhering to the following mandates, as they will help secure a successful transaction:

Place A Reasonable Price On Your Practice.
An inflated figure either turns off or slows down potential buyers.  Determine the “fair market value” and then price the practice accordingly. Set a “win-win” price.

-     Carry on “Business As Usual.”
Keep your focused on the day-to-day demands that affect the sales, costs, and profits.  Address, in a timely fashion, buyer inquiries.

-       Prepare For The Sale In Advance.
Adequate preparation generally reaps long-term dividends.  The Practice owners can help in the process by  “housecleaning” the facilities and perhaps attending to accounting matters.

-       Anticipate Information The Buyer And Their Financing May Require.
The buyer will need appraisals on major assets such as real estate.  Lenders will requere of at least three years of tax returns, the most recent financial statements, and depreciation schedules.

-       Achieve Leverage Rhrough Buyer Cometition.
A good practice priced properly will create interest from several buyers and create a competitive situation.  Leverage the circumstances to your advantage.

-       Maintain Deal Flexibility.
Few deals are all-cash at closing. Consider accepting deferred payments.  Understand an offer from the buyer’s perspective.

-     Negotiations - Don’t Dominate .
Be prepared to learn that the buyer mat be used to having his way, too.   Whth your practice broker's help, deceda ahead of thme “when to hold and when to fold.”

-      Keep Time From Dragging Down a Potential Deal.
Maintain the inquirer’s interest and keep the momentum going.  Understand an offer from the buyer's perspective.

-       Be Willing To Stay Personally Involved.
                Even if you are feeling burned-out, realize that the buyer may want you to stay      
                within arm’s reach for awhile.  Consult with business brokers to determine how you can best effect a smooth transition.


Primary Objectives

A seller’s ultimate objective is to obtain a successful transaction by structuring the best overall deal in term of cash and terms. Perhaps the most important initial matter the seller faces is the choice of brokerage firm.

Our experience and background uniquely serve the interests of the seller.

Business Brokerage Services
CBI, Certified Business Intermediary
Accounting & Tax Matters
CPA, Certified Public Accountant
Business Valuations Opinion
ABV, Accredited in Business Valuation
Real Estate Transfer Issues
Licensed Broker, Real Estate Commission

The initial objective of our service is to market and direct prospects to the seller’s business offering. The first document viewed by the prospect is a “blind” Business Profile summarizing the key financial and operating attributes of the business. We subsequently screen the prospect as to its buying motives, financial capacity, and suitability for purchasing the listed entity.

Other matters of concern include: establishing procedures for confidentiality, addressing fair market valuation issues, obtaining nondisclosure agreements, sharing core documents, introduction of the parties, communicating negotiation positions, complying with due diligence requests, understanding and properly responding to offers and -- most importantly -- creative deal structuring.

Our fiduciary duties are exclusively with our selling client. In this regard we direct our acumen, our experience, and our efforts towards a professional brokerage consulting service that achieves the most advantageous transaction possible for the seller under the circumstances.


Note: Remember ultimately the success or failure of the business is the owner’s responsibility, and there is no “Right” business, so buyers must be flexible.

© 2005 - 2010 Christopher S. Whitener CPA. All rights reserved.

[Home] [M&A Services] [Consulting] [M&A Tax Services] [Business Valuation] [Practice Valuation]
[Buyer Brokerage] [Seller Brokerage] [Publications] [About The Firm] [Links & Tools] [Copyright] [Privacy]