Buying a solo ophthalmology practice.

[Buckeyedoc97]

Hello everyone. I'm a practicing ophthalmologist that has been with my current group for the last 8 years. Been a partner for the last 6. I am quite unhappy with the direction the practice is going and have been trying to leave for the last few years. I am tied to the area so so I've been patiently waiting for another opportunity to open up. I was contacted by an ophthalmologist in a nearby city that wants to retire ASAP and is selling his practice.

I have visited the practice several times, seen the financials and I've really liked what I've seen. I honestly feel I would not have to change much once I take over the practice. Also would not have to buy any new equipment. (everything is state of the art). He also owns the building which already has 3 long time tenants renting the other spaces. He has already had the practice valuated and I know what that dollar value is.

I would really like to pursue this opportunity but need some advice on how to proceed. I am definitely going to have to take out a loan to help finance a portion of this. I obviously need to get the practice evaluated independently for me as well. And also need someone to look for potential pitfalls I may be overlooking.
It was already suggested to me by the selling doctor to start with an accounting firm. The seller and his financial firm want to sit down with me and an accountant to propose a plan to sell me the practice. I currently have an accounting group that does both my personal finances as well as my current practice's. I have spoken with them and they would be we happy to help me and will also set me up with local banks to help with financing. I was also going to reach out to other accounting firms in the area that have experience with medical practices and speak with them as well.

Is there any value in using a large national consulting group such as BSM consulting or another company?


Any advice would be appreciated.

Thanks

---

Members don't see this ad.

 

[krukenbergspindle]

White Coat Investor has a good post/podcast about this.
Solobuildingblogs is a good site too.

 

[LightBox]

What's the EBITDA of the practice? Try to conduct the transaction as an asset sale so you get the step up in basis. Should be relatively easy to valuate the practice.

 

[MstaKing10]

Consider seeking legal counsel, especially from a corporate attorney experienced in medical practice acquisitions. There are also investment banking firms focused in the healthcare space.