Selling your private practice is not just a transaction—it’s a life-changing decision. The transition from building a business to successfully selling it is filled with challenges, and many practice owners learn hard lessons along the way.
In our recent fireside chat, experienced private practice owners shared their biggest selling mistakes, how they positioned their practices for sale, and what they wish they had done differently. If selling your private practice is on your radar, these insights could save you time, money, and stress.
Avoid These Costly Mistakes When Selling Your Private Practice
A smooth and profitable exit is often the goal, but many business owners stumble due to inadequate preparation. Below are the most common mistakes made—and how they can be avoided.
1. Financials Are Not Clearly Understood
Buyers seek clear and well-documented financials. If books are disorganized or filled with personal expenses, red flags will be raised. Potential buyers prefer financials that add up without complications. Predictable revenue and a business that operates independently are highly valued.
Fix it: A CPA should be consulted, financial reviews should be conducted, and P&L statements, balance sheets, and tax returns should be maintained in a clear and compelling manner.
2. Selling Is Considered Only After Burnout Sets In
Many owners delay the selling process until feelings of exhaustion and overwhelm take over. Unfortunately, burnout leads to desperation, which can result in less favorable deals. Urgency is often detected by buyers, leading to tougher negotiations.
Fix it: Exit planning should begin years in advance. Preparation should take place before exhaustion sets in to ensure a stronger position when selling.
3. Day-to-Day Operations Depend Too Heavily on the Owner
If a practice cannot function without its owner, it is considered less of a business and more of a job. Buyers prefer businesses that can operate smoothly without owner involvement.
Fix it: Systems should be created, delegation should be prioritized, and leadership teams should be empowered. A business that is still dependent on its owner is not sale-ready.
4. Sale Discussions Are Poorly Managed Internally
Prematurely leaking news about a sale can lead to unnecessary staff panic and potential turnover.
Fix it: Sale discussions should be kept private until the appropriate time. When the moment arrives to inform the team, a strategic plan should be in place to ensure smooth communication.
The Ideal Timeframe for Selling Preparation
The best time to prepare for a business sale is before it becomes necessary. 2-5 years of preparation is recommended before a planned exit to ensure an optimized and profitable transaction.
The Emotional Challenges of Selling a Business
One of the most overlooked aspects of selling is life after the sale. Many owners proceed with sales without a clear vision for their future, leading to post-sale regret.
Selling a business is not purely a financial decision—it is a personal one. Consideration should be given to post-sale roles, potential equity retention, and long-term career goals.
Action step: Before selling, long-term objectives should be clearly defined to ensure a successful and fulfilling transition.
Coaching During the Selling Process
Selling a practice is complex, and going through the process alone can lead to missed opportunities. Many practice owners benefit from business coaching, which helps with:
✔ Identifying blind spots
✔ Boosting confidence during negotiations
✔ Accelerating readiness for sale
Selling a Business Is a Process, Not an Event
Your business represents years of dedication and hard work. Rushing into a sale without proper planning can reduce valuation and limit opportunities. Whether you’re planning to sell soon or just want to maximize practice profitability, taking the right steps today will lead to a better future.
Above all, a business should be designed to support its owner’s life—not consume it. Regardless of whether a sale is pursued or continued growth is the goal, ensuring the practice serves the desired lifestyle is essential.
At Practice Freedom U, we help private practice owners create profitable, self-sustaining businesses. Whether you’re preparing for a sale or want to enjoy more time and financial freedom, our expert coaching provides proven strategies for success.
If you want to hear directly from private practice owners who have gone through the selling process, watch the full Fireside Chat recording. Get access to the discussion and gain actionable advice on positioning your practice for a successful sale. Click here to watch now: https://practicefreedomu.com/positioning-your-practice-to-sell/
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