Selling a medical practice can be a lucrative endeavor. One of the most important phases of any sale transaction is the due diligence process. During this phase, a potential buyer and their advisors have the opportunity to examine the seller’s books, records and files in great detail to ensure that the buyer is comfortable purchasing the practice. Due diligence usually involves an investigation of records and documents by attorneys and financial experts. Because of the people involved and the level of detail the potential buyer usually expects in the information they review, the process can be somewhat burdensome and, at times, disruptive to a practice’s daily operations, especially if a seller is not prepared for what the process may entail.
Explore this issue:September 2017
A medical practice owner can take a number of steps now to ensure the practice is attractive to a buyer in the future.
Corporate Records and Documents
It is essential for the practice to keep organized and up-to-date corporate records. These records include formation documents, such as certificates of organization or articles of incorporation; and organization documents, such as operating agreements, bylaws, meeting minutes and written consents.