While it might be tempting to sell your practice without consulting a transition professional, you should first weigh the financial advantages of retaining a broker. While you may think that eliminating broker fees will save you a small sum of money, you will likely lose out by the time the deal is completed. Consider how a broker can earn you more money for your practice:
- They Get the Price Pight: A professional transition broker has the resources needed to accurately appraise your practice. Without this extensive market data, you may unwittingly undervalue your practice.
- They Are Experienced: Such a significant transaction requires extensive financial know-how and planning. Brokers have conducted hundreds of transactions and can anticipate potential risks and leverage every advantage possible. Their expertise ensures you will not overlook a crucial variable that may cost you considerable time and money.
- They Understand Taxes: Brokers know how to minimize your tax liabilities and can save you between 10% and 20%. Navigating the tax code alone increases the likelihood that you will overpay in taxes.
- They Find the Buyers: Brokers discover qualified buyers and generate demand. Utilizing a broad network of professional industry contacts, brokers can quickly identify buyers whose needs match your practice’s assets. Many of the tools at their disposal are simply unavailable to the unexperienced seller.
- They Close the Deal: Professional transition experts know how to best present the strengths of your practice and reassure uncertain buyers. They can decipher confusing financial documentation for potential buyers and move the transition from initial interest to final closing.
- They Same Money by Saving Time: By navigating the confusing myriad of tax, legal, lease, insurance and contract documents, brokers expedite the transition process and save you money.
The savings and peace of mind transition experts provide actually outweighs the cost of their fees. Before braving a transition alone, consider how much value a broker brings to the transaction.