Having just gone through the process of selling my final two health clinics – I started to look at the many ways that health business owners can maximise the sale price of their business – assuming you are interested in selling it in the first place.
One of the key areas that can impact the sale of any business, and especially those in health care, is the involvement of partners and partnership agreements.
There is no question that businesses with multiple partners and decision makes – can present difficulties in the sale process – some of these difficulties include:
– Do all the partners want to sell the business at all?
– Does each partner have a different view of the asking price?
– Is there a majority shareholder that has the power to sell the business without the other partner’s approval?
– How difficult would it be to sell a business that is in some state of conflict prior to the sale – this will dramatically reduce the sale price and goodwill component of the final price.
I have always been reluctant to enter into any partnership agreements – as many of you know – however it is clear to me – having just been through the sale process – that the addition of partnerships would have made the sale process much harder.
The take home message for all health professionals looking to take on a partner is to think long and hard about the implications of any partnership agreements well down the track – and the issues this partnership agreement raises during any future sale negotiations.
There is no doubt that partnerships can work in health care – however – business history is littered with stories of fractured relationships , expensive court battles and partners walking away from a business after putting in years of work – due to partnership problems.
If you are interested in finding out more about “Partnership Options in Health Care” – I had the absolute pleasure of interviewing one of my closest friends and business mentors – Greg Hurst – about this exact topic as part of my “Profit Club – CD of the Month”.
This one hour CD interview is sent to all “Profit Club” members as their “Month Two CD” – and follows on from the excellent “Month One” interviews on the topics “Website Mistakes in Health Care” and “The Top Business Mistakes”.
You can find out more about “Profit Club” at :