Securing Your Future 

 

 

 

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Succession Strategies

Tired of Running the Business?

I've met two professional practice owners and one business owner in the last 30 days who want to continue practicing/working but are tired of running the practice/business.  All three are considering selling to solve their problem.  Wouldn't a better solution be hiring a professional manager?  A second, possible better option is to train a key employee to be a manager.  Granted, it often makes sense to offer equity or equity-based compensation to a key employee. 

If you want to continue working in the same profession (and studies show that a growing number of baby boomers do), why sell and work for someone else?  Few buyers will pay all cash because small business financing is scarce.  Self-financing means that you are going to be repaid out of the business/practice profits.  You could get that same cash flow by retaining ownership.

Professional managers do not need to be licensed provided that they do not get involved in decisions regarding treatment or scope or nature of service.  Law firms, accounting firms and some dental practices have all had success with professional non-licensed managers.

Some owners want the security of knowing that they have a buyer and a firm price.  Other owners want to significantly reduce their hours.  For those people, selling now makes sense.  Owners who would like to improve their practice/business in the hope of selling for more in the future should consider hiring a professional manager or grooming a key employee.