Preparing Your Practice for Sale

Identify and remove any “personal” expenses (family cars, cell phone plans, etc.) from your business tax return as soon as possible.
Ideally you will want to have three years of “clean” tax returns when you put your practice on the market. Also, identify owner “perks” on the books.

Both of these steps will provide the buyer with a clearer picture of profitability and justify a higher selling price. This accurate demonstration will also help lenders accept any adjustments and ease buyer concerns while improving the buyer’s ability to secure financing.

Finally, if possible, avoid making significant capital investments or dramatic staff changes in the year prior to putting your business on the market. These activities will muddy the clarity of the infrastructure, staff work capacity, and the normal workload flow … and may raise unnecessary questions and concerns.