HOW TO SELL WELL

Here are our top tips to avoid common pitfalls when selling your aesthetic medicine practice

Selling an aesthetic medicine practice is a significant milestone in a practitioner’s career. It’s not just a financial transaction; it’s the culmination of years of dedication, patient relationships, and professional growth. The process can be complex, and missteps can lead to undervaluing your life’s work or encountering avoidable hurdles. Dr Sue Denim’s recent experience offers valuable insights into how engaging the right expertise can make all the difference.

THE TEMPTATION OF THE FIRST OFFER

Dr Denim had built a thriving aesthetic medicine clinic. Out of the blue, she received an unsolicited offer from a potential buyer. The figure was attractive, and the prospect of a quick sale was tempting. Accepting the offer seemed like the path of least resistance, promising a smooth transition into her next life chapter.

However, she couldn’t shake the feeling that this might be too straightforward. Was the offer truly reflective of her clinic’s value? Were there hidden caveats she wasn’t considering? These questions prompted her to take a step back and reassess her options.

SEEKING PROFESSIONAL GUIDANCE

Recognising the stakes, Dr Denim decided to consult with Verilo, a brokerage firm specialising in medical practice sales. Verilo conducted a thorough valuation of her practice, considering not just the financials but also intangible assets like brand reputation and patient loyalty.

With Verilo’s assistance, Dr Denim’s practice was presented to a broader market. The response was very positive. Multiple offers came in, two of which exceeded the initial unsolicited proposal by over 20%. These offers also included more favourable terms, such as better payment schedules and fewer contingencies.

NAVIGATING THE CHALLENGES

The sale process was not without its challenges. On at least three occasions, negotiations hit a stalemate over contractual details and due diligence findings. While such deadlocks can derail a deal, Verilo acted as mediators. Their industry expertise and objective perspective enabled them to propose pragmatic solutions that satisfied all parties involved.

For instance, when disagreements arose over post-sale staff benefits, the brokers facilitated a compromise that protected Dr Denim’s team while addressing the buyer’s operational concerns. Their ability to navigate legal and interpersonal hurdles proved invaluable, keeping the deal on track and reducing stress for Dr Denim.

THE OUTCOME

Ultimately, Dr Denim accepted an offer that was significantly higher than the original proposal. The buyer she initially considered even increased their offer by more than 20% to stay competitive. The enhanced terms and higher sale price more than covered the brokerage fees – twice over, in fact.

But beyond the financial gains, Dr Denim found peace of mind. She avoided potential pitfalls that could have arisen from an off-market deal, such as undervaluation or unfavourable contract terms. The professional guidance she received ensured a smooth transition, honouring the legacy of her practice and securing its future success.

LESSONS LEARNED

Dr Denim’s experience underscores several critical lessons for practitioners considering the sale of their practice:

1. Market exposure maximises value: Engaging with experts opens the market, potentially attracting multiple offers that can drive up the sale price.

2. Professional negotiation mitigates risks: Brokers bring negotiation skills and industry knowledge that can resolve disputes and prevent deals from falling through.

3. Avoiding off-market pitfalls: Accepting an unsolicited offer without due diligence may lead to undervaluation and overlooked contractual complexities.

4. Financial and emotional wellbeing: Professional support not only enhances financial outcomes but also reduces the emotional burden associated with the sale process.