Selling your medical office might involve more than you realize. Therefore, you must avoid certain typical mistakes for a successful process. If you’re planning to sell your medical office space, we invite you to continue reading to learn the common mistakes to avoid.
Be Aware of These 7 Potential Mistakes When Selling Your Medical Office
1. Lack of preparation.
It is a big decision to sell your medical center. But first, you must invest a lot of time and effort to get the essential documents ready for the settlement while you prepare for a sale.
If you are unprepared, it may cause unnecessary complications that delay the sale or even result in the buyer backing out. So, follow a methodological approach and don’t just rush to sell your property.
2. Disorganization of vital contracts.
You must ensure all vital contracts are in writing when selling your medical office space. When you don’t have key contracts in writing, you get exposed to management and administrative risks. It also encourages a buyer to conduct due diligence.
3. Inaccurate reflection of asset values.
The selling price you set for your medical center accurately reflects the value of assets and goodwill. To arrive at this selling price, you must prepare a collection of assets, including equipment, pictures, and plants. For this, you may hire a professional to estimate the value of your assets accurately. Besides estimating your asset values, they also assess the attached goodwill.
Do you know what goodwill is? It is a kind of intangible asset that attracts maximum customers to your business. Goodwill is based on the reputation that the practice has built over the years. It includes the personality and skills of the principal and other major staff.
4. Breaching of confidentiality agreement.
Information and negotiations exchanged between you and the buyers when selling your medical office must be confidential. You can see this rule specified in the Non-Disclosure Agreement or Expression of Interest you sign before getting into a Contract of Sale.
No one wants a competitor acquiring vital information regarding your selling process. Therefore, when you get into negotiations before selling your medical office space, ensure the buyer is fully aware of the confidentiality agreement. However, you are also obligated to give your buyer sufficient information to conduct due diligence.
5. Inaccurate details or false representations.
Also ensure the information you deliver and the representations you give to a buyer for your medical office are completely accurate. Once you give misleading pre-agreement statements or representations such as financial status and patient base size, a buyer may have statutory and contractual solutions against you.
To put it simply, you are contractually forbidden from falsifying or misrepresenting information to the buyer. If you do, your buyer can take legal action against you.
6. Disorganized handover process.
An intelligent seller takes time and tries to arrange an organized handover process. This process includes discussing patient management with a buyer, introducing them to practice principals and other staff, and negotiating a handover/training period where you can actively practice for a certain tone period after the sale.
7. Ignoring ongoing risk mismanagement.
Consider the ongoing risk management when selling your medical office space. Even though you are selling your property, the patients’ liability does not end here. As medical records continue to be managed properly after the sale, you can provide the authorities with access to old records when required.
If you have any questions or suggestions, we always love to hear from you in the comments below. Also below are links to more interesting and informative articles about ALL things DESIGN for your home or business.
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