A practice merger is a transaction where one doctor sells his/her practice to another established doctor in the same area and merge the practices together in one office.
That is a choice for the purchaser to make. Usually, the seller relocates to the purchaser’s office unless the seller’s office is larger and can better accommodate the two practices.
Most sellers would prefer to sell their practice to an established doctor in the same area who already has experience with operating a practice and who is usually more credit-worthy. Many sellers wish to continue to practice for the purchaser after the sale and a practice merger works best to handle this situation.
A practice merger is the best investment a doctor could ever hope to make in his/her lifetime. First of all, it is investing in a business you already know. Second, it increases your patient base and leads to more patients, more referrals, more growth and more profits. Third, it eliminates a competitor. Buying a practice in your area prevents a more aggressive competitor from acquiring it and competing with you. Fourth, a practice acquisition is usually a highly leveraged transaction. You get more “bang for the buck” and a chance for a high return on investment which often exceeds 500% the first year (try to beat that with the stock market or real estate). Fifth, safety; historically 95% of the sellers’ patients transfer with the seller and stay in the practice once the seller retires. It’s the best sure-thing you will ever have as an investment.
There are several ways to use a small office when merging two practices, including off-setting office hours, days or even weeks. The seller is usually ready to cut back to a half-time schedule. A practice merger often presents an opportunity for the purchaser to also slow to a three day work week and still make more money than he/she was making while working a four or five day week.
Confidentiality is very important. We cannot disclose the seller’s identity to you or anyone else until we have determined your actual level of interest and suitability for this potential merger. To do this, we will have to know more about you and your current practice. Once suitability has been determined and you understand the economic benefits of this practice merger, we will arrange a meeting between you and the seller.
Remember, a practice merger is the best investment a doctor could ever hope to make in his/her lifetime if the transition process is followed carefully.