1) Introduction
Situated thirty miles from Dallas, Dr. M lives in a rural town and enjoys golf. However, what he values most is seeing patients in his practice. Dr. M has built up a large successful practice over the years, with its own in-house lab. He has also offered several ancillary services in addition to the main practice. Managing such an expansive office is time-consuming, and although Dr. M wants to continue practicing, he wants to spend less of his time managing his practice.
2) Challenge
The easy option for Dr. M would be to take the offer the local hospital system has put on the table for $150,000. This would save Dr. M the hassle of putting together his financials and marketing his business. However, Dr. M suspects his practice is worth more than what is being offered.
3) Our Approach
Dr. M decides to do some investigating on price and fills out Practice Transition Group’s (PTG) medical practice valuation calculator. He receives results that far exceed his expectations. Shortly thereafter, Taylor Fyfe reaches out to Dr. M to hear more about his goals with the sale.
4) Road Blocks
Dr. M’s practice uses a unique approach to working with patients called chronic care management. This involves managing patients’ care at other practices, in addition to his own and ties payments to outcomes. Taylor and PTG know this could be a selling point but need educated buyers who understand Dr. M’s approach and how it could benefit them.
5) Solution
PTG conducts an intricate underwriting of Dr. M’s practice. Using the contacts and networks that PTG has built up, Taylor brings multiple offers to the table.
6) Results
Ultimately, Dr. M sells to a conglomerate of physician partners for $3.7 million – or $3.5 million more than the hospital system offered him directly. Dr. M is pleased with such a generous paycheck, but far happier knowing he can continue treating patients and now can squeeze golf games into his weekly routine.