Financial Aspects of Selling and Acquiring an Internal Medicine Practice in Arizona

1. Financial Aspects of Selling and Acquiring an Internal Medicine Practice in Arizona Considering a transition in your career as an internist? Whether you're looking to buy or sell an internal medicine practice for sale in Arizona, it's essential to know what's financially involved in either scenario. With the right information, you can make an informed decision to either buy an existing practice, thus giving your career a boost, or sell your practice when you're ready for retirement or a career change. Determining the value of the medical practice Before you decide to sell or acquire an internal medicine practice for sale in Arizona, due diligence is essential. You're not merely transferring ownership of a building—you're selling or buying a fully operating business. Therefore, it's important to conduct a professional practice valuation. Look into key metrics like revenue forecasts, cash flow, accounts payable and receivable, contracts, equipment, assets, and debts. Make sure to check for any past legal issues and get the facility inspected to ensure it meets code regulations. Questions to ask if you're buying a practice If you're planning to buy an internal medicine practice, it's useful to understand why the current owner is selling. Taking your attorney's advice into account, you may want to conduct a background check on the seller. Investigate their financial health and any past legal complications. This information can help you assess the risks associated with the acquisition and enable you to negotiate favorable terms and a competitive price. Understanding the operational costs The asking price is only part of the equation when evaluating an internal medicine practice for sale in Arizona. You should also understand the operational costs you'll incur to keep the practice running smoothly. Think about recurring expenses like utility bills, inventory, payroll, building maintenance, and IT services. In addition, factor in potential costs for updating equipment, such as the Electronic Health Records (EHR) system, and for hiring new staff. Having a full financial picture enables you to estimate the time frame for profitability and assess whether you can sustain the practice in the meantime. Make sure you have adequate budget reserves to cushion any financial impacts, such as patient attrition or downtime during the transition period.

2. Tips for selling your practice If you're on the selling side, begin with a professional valuation from healthcare practice brokers. They can help you determine the fair market value of your practice and can also connect you with potential buyers. Whether you're looking to sell or acquire an internal medicine practice for sale in Arizona, Strategic Medical Brokers can offer expert guidance. Utilize their instant medical practice valuation calculator on the website or schedule a consultation for more personalized advice.