BLOG: Bankers and lawyers and accountants, oh my!
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One of the first questions we invariably hear from physician practices is, “Should we hire a banker?”
Clearly every situation is unique, and there is no one-size-fits-all approach. That said, on balance, we do generally recommend that practices looking to explore a potential sale consult with (and potentially hire) an investment bank to assist. A banker will help determine the value of your practice, but more importantly, they will help create interest in your practice by running a marketing process to generate a competitive bidding process. They will also help manage the entire sale process. Yes, the fees can be expensive, but on balance, the value usually outweighs the costs.
Source: Adobe Stock.
And bankers won’t be the only advisers you’ll need. You will need to hire lawyers and potentially an accounting firm to assist with quality of earnings and other aspects. We appreciate that this will sound self-serving — but this is not a time to cut corners.
Hiring advisers is expensive — but if you’re selling your practice, it’s arguably the most important transaction of your life. You want to make sure you have the right experts in your corner. Advisers do more than just push paper and crunch numbers — they help drive, and protect, value.
Not sure who to hire? Talk to your peers in the industry who have been through a sale process. Get recommendations, and then interview multiple bankers, lawyers and accountants. If nothing else, you’ll get plenty of free advice through the interview process.
You should also ask the bankers for law firm recommendations and ask the law firms for banker recommendations. This is a small industry, and most advisers know (or know of) each other. You will probably get candid assessments, which should help make your decision easier.
Then, once you have the right advisers on your team, the proverbial yellow brick road alluded to above should be much easier to navigate on your way to Oz (aka, a successful closing).
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