Episode 280 - Show Me The Money | The Remarkable Practice

Recap

In this episode, you’ll discover:

The 3rd party in every deal: the banker
The importance of securing financing in any deal
Lots of opportunities in practice acquisition
De Novo (opening new business) vs Acquisition (buying an existing business) the step by step guide to securing financing

00:50 – Introduction to the topic of acquisition, emphasizing the benefits of buying a practice instead of starting a de novo.

02:51 – The importance of not making assumptions, especially for first-time buyers.

04:10 – Three major dynamics affecting practice transitions: post-COVID hangover, baby boomers aging out, and economic uncertainty.

06:06 – The need for proper planning and clean financials to make the practice more attractive to buyers.

10:37 – The value of seller financing as it is viewed positively by banks, as it keeps the seller engaged and vested in the business’s performance.

16:49 – The role of documentation and due diligence in the process of selling and building trust with the banks.

27:27 – The pros and cons of buying a practice vs. starting a practice.

33:20 – The concept of arbitrage, where buyers can improve the business by increasing charges, adding services, or growing patient numbers.

38:57 – The differences between asset and stock purchases, noting that asset purchases are more common and forgive past sins.

44:48 – The benefits of expanding with SBA loans, including the potential for zero down and expedited vetting processes.