Our Buying Process – ProHorizons
If you’d like to more about a purchasing a practice, fill out our Buyer Registration Form
Buying Process & Acquisitions
STEP 1: Register as a Prospective Buyer
Registering as a buyer and completing a prospective buyer agreement are required to move beyond this first, critical step. During the registration process your goals and expectations—existing business structure, geographical preferences, financing available, etc—begin to take shape. Providing as much information as possible ensures that we focus on practices that are the best fit for you.
STEP 2: Identify Practices to Review
Sellers have invested a tremendous amount of time and effort in building their businesses and would like to see it sold to someone who will continue to make it successful. Buyers look at the success of a practice and how it will fit their current business structure and environment. We use a screening process that looks at the key concerns of the seller and the top criteria of the buyer to come up with possible matches. In addition, we continuously update our online list of practices available.
STEP 3: Review Practice Business Information
After identifying a practice, our staff will send a profile and/or a confidential Business Sales Memorandum. These documents detail all of the core aspects of the business and contain the information you need to take the next step in acquiring the practice.
STEP 4: In-depth interview
With your initial registration and buyer agreement in hand, we will follow-up to fill any gaps and gather additional information. In this step we’ll discuss in more detail everything from your current business, to qualifications, to your goals and expectations. Getting to know you and how we can work together is a top priority. During this step we will also determine your financing needs and, if necessary, perform a loan pre-qualification.
STEP 5: Meet the Seller
This meeting is an important step. Remember the adage about first impressions. To a large degree, the success of your meeting will depend on your ability to connect with the seller. The seller has a lot invested, both financially and emotionally, in the practice and wants to ensure that it is turned over to someone who will take care of it.
STEP 6: Prepare an Offer
If after the meeting there is sincere and mutual interest, you may decide to make an offer. To assist you in structuring your offer we have a sample Letter-of-Intent that covers all of the essential elements. When your Letter-of-Intent is prepared we will present it to the seller.
STEP 7: Prepare Financing/Loan Package
Should outside financing be necessary, we will help you identify appropriate lenders. We can also assist in preparation of the loan package.
STEP 8: Negotiate Additional Details
Our clients prefer that we facilitate the negotiations in consultation with both parties. We provide a buffer during potentially tense times. We insure personalities don’t get in the way of good business decisions and negotiate an agreement that is a win-win deal.
STEP 9: Perform Due Diligence
You will want to perform due diligence. As in all business transactions “Caveat Emptor” applies. Therefore, it is your responsibility to perform an adequate investigation prior to closing the sale.
STEP 10: Draft a Purchase Agreement
A well-written agreement that spells out everything—price, terms, etc—can be the difference between a deal that sounds good and one that is enforceable. To assist in this step, we can provide a comprehensive sample Purchase Agreement.
STEP 11: Close the Transaction
With the thorough completion of the previous steps, this step can be the easiest—when the documents are signed, the funds are exchanged and the deal is completed.
STEP 12: Start the Transition
The transition is the most important step. Our sample client letters will give you a start and we can help you plan conversations with the clients and staff. In addition, with our hands-on experience, we can be your sounding board when questions arise and can coordinate a successful transition for all involved.
For detailed answers to your questions about buying a practice, consider attending our webinar series.