How Rogerson Business Services Sold A California Medical Practice Successfully
Introducing The Family & Cosmetic Care Medical Practice
The case study showcases a thriving family and cosmetic medical practice located in Loomis, California, which is poised for a relatively straightforward sale.
Loomis Medical Clinic Family & Cosmetic care offers a comprehensive range of women's health services, encompassing pelvic exams and Pap smears. Additionally, our dedicated providers specialize in managing chronic diseases such as diabetes, heart disease, and other long-term conditions, ensuring patients maintain optimal control.
At Loomis Medical Clinic, physicians provide an array of cosmetic procedures for both women and men seeking nonsurgical, anti-aging solutions. Their skilled providers utilize renowned products like Botox®, Restylane®, and Juvéderm® to effectively minimize wrinkles, fine lines, and facial creases.
In June 2022, the owner made the decision to sell his esteemed medical clinic, which had already been flourishing in Loomis, California. Motivated by the desire to retire, a strategic marketing campaign was promptly launched to identify a proficient and interested buyer within a reasonable timeframe.
The Challenge Selling Loomis Medical Clinic
Finding qualified and interested buyers for a medical practice in California is hard, especially since they must be licensed doctors in the state. In this case, the listing attracted a fair amount of interested buyers and to a surprise to all, many interested buyers were out of state as stated by Dr. Gramm. While the financial performance of the medical practice was appealing to potential buyers, there were additional factors to consider. Financing would not be one of them in this situation since the health of the company would easily support an SBA loan if necessary.
The validity of a doctor's license is limited to the state it was issued in. It is important to note that being licensed in a different state does not automatically grant authorization to practice medicine in California. The Medical Board of California must first register the doctor before they can begin practicing.
In order to successfully close the sale of a medical practice, all necessary steps must be completed. Obtaining information from the licensing agency, as well as consulting with a specialized attorney or a medical business broker, can be highly beneficial in this process. These sources are known to provide prompt and effective assistance in this matter.
Prospective purchasers must have both the appropriate down payment and the means to secure an SBA or conventional loan in order to acquire the medical practice available in California. Ideally, the perfect candidate would be a licensed doctor with current or easily obtainable licenses, as well as possessing financial stability.
The Medical Practice Buyer
Around eight months after the medical practice was put up for sale, our marketing efforts finally paid off as we found the perfect buyer. Not only did they have a substantial down payment that enabled them to secure a loan, but they also displayed genuine interest and readiness to acquire the medical practice.
While the buyer did not possess all the necessary licenses initially, they did possess the specific one that made it simpler to obtain the remaining requirements for the medical practice. It seemed that everything was perfectly aligned and in accordance with the necessary protocols.
The Definitive Purchase Agreement
Dr. Gramm had a pleasurable experience meeting potential buyers who were interested in acquiring his business. These meetings were characterized by smooth interactions, excellent collaboration, and outstanding communication.
The negotiations commenced with the presentation of an offer. The buyer expressed a desire to secure an SBA loan in order to finance the acquisition, as no seller financing options were available. Once all the aforementioned details were mutually agreed upon and a settlement was reached, the buyer proceeded to sign a Letter of Intent. Subsequently, in April 2023, a definitive purchase agreement was executed. Although the original closing date was scheduled for early December 2022, this timeline was adjusted accordingly.
SELLING PROCESS
HAPPY EXIT
Dr. Gary Gramm, proprietor of Loomis Medical Clinic, was overjoyed when escrow officially concluded. It is crucial for potential sellers to heed sound advice and never attempt to sell their medical practice without the expertise of a qualified broker who possesses comprehensive knowledge of the intricacies of medical practice business sale transactions.
"Securing the services of a business broker familiar with the sale of medical practices is essential”
HAPPY BUYER
The purchaser of the medical practice was overjoyed when the escrow process finally concluded. The purchaser diligently went through the necessary investigations and inspections. Thanks to Dr. Gramm's exceptional organization and provision of the appropriate documents for examination, all concerns were addressed smoothly and transparency was achieved.
"The importance of having practice information such as numbers of patients, accurate receivables, revenues, expenses, profit and loss accuracy, staff salaries and payor mix.”
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