Having your business acquired is a stressful process, and it’s not always quick and easy. A physical therapy practice acquisition requires quite a bit of work and even more paperwork. If you want to make sure that you cover all of your bases, we are here to help.
Read on to learn about everything you need for a successful physical therapy acquisition. You can use it as a checklist to stay organized and prepared.
Preparation checklist for a physical therapy practice acquisition
If you’re getting ready to sell your practice, there is a lot of information that potential buyers will need in order to consider an acquisition.
Paperwork needed for acquisition includes:
- Policies and procedures — Knowledge of how you currently run your practice will show potential buyers what they’re walking into. It’s important to have documented policies and procedures. They should include your organizational structure, supplier and vendor relationships, patient engagement, marketing and hiring procedures.
- Financial statements — It goes without saying that money plays a pivotal role in acquisitions on both the buyer and seller sides. And to ensure that your clinic is transferable, buyers will need to see your financial statements. Be sure that you have clean bank statements to present, as well as income statements to show profit gains and losses.
- Key performance indicators — Your operational metrics are essential in determining the value of your clinic, which is important for buyers. The metrics that you should have available include KPIs like net revenue per month and per visit, revenue per therapist, net collection rate and patient conversion rates.
- Contracts — Be sure that you make copies of your clinic leases and insurance contracts. These provide important information like your lease renewal dates and its ability to be reassigned to a new owner.
Completion checklist for a physical therapy practice acquisition
Once the buyer has agreed to acquire your practice, there are a few things that need to be done in order to complete the process. These will usually be done with the assistance and supervision of your lawyers.
Completing a practice acquisition includes:
- Finalizing the agreement — An acquisition isn’t possible without a formal purchase agreement. It’s a legally binding contract that will be signed by both parties. The agreement includes the offer price, closing costs and the possession date.
- Transfer ownership — Once the purchase agreement has been signed, you must transfer the ownership of the clinic. This involves signing a Transfer Of Ownership Agreement.
- Adjust licenses — Similar to switching over ownership, you must also change the names on your licenses and insurance in order for them to be applicable to the new practice owners.
Alliance can help complete your checklist for a physical therapy practice acquisition
There is so much paperwork that goes into a physical therapy clinic acquisition. It can add confusion along with the emotional distress that may come from selling your practice. But we’re here to help.
Contact our team today for more information about how we can help your practice or to find out how you can join our partnership in care.