Thinking About Buying a Chiropractic Practice? Read This First!

The 17.9 billion dollar chiropractic industry offers plentiful opportunities for those that want to own their own practice. Like many other industries, buying an established office allows you to bypass some of the challenges of a startup. Still, it’s crucial to understand what you’re getting into before making such a major decision. Below, we discuss factors you should address before buying a chiropractic practice.

Tips to Find the Right Chiropractic Business for Sale

There are several reasons that you may be interested in purchasing a chiropractic clinic. Perhaps you’re hoping to buy out your competition and reach new patients. Or, maybe you’re ready to become your own boss for the first time. Whatever the reason, with the industry’s 7.6% increase in revenue in 2021 alone, there’s sure to be a piece of the market available. If you’re ready to begin browsing chiropractic practices for sale, pay close attention to the following factors.

1. What’s Included in the Sale

Existing practices have built up numerous assets over the years, and it’s in your best interest to assess them all. Take a look at the asset list and equipment and determine how soon you’ll need to make updates. Additionally, determine if there are other pieces of furniture, supplies, or other materials you’ll likely need to purchase to get up and running.

2. Employees and Leadership

You’ll also want to address whether current employees and chiropractors are staying on to ease the transition. One of the key benefits of purchasing an existing business is gaining access to its patient base. However, without the trust that comes with familiar faces, you may see a drop in your patient list. At the very least, negotiating to keep some key staff can help make for a seamless move.

3. Cash Flow

One obvious point to look at is the business’s financial health. At a minimum, you’ll want to look over tax forms, expenses, accounts receivable, payroll, and profit margins. An experienced practice broker can help you look at the bigger picture of the financial health of the chiropractic office.

The current practice owner likely has an emotional connection to their business. For this reason, it’s best to look for a company whose valuation comes from a professional third party. If the owner has enlisted the help of an experienced practice broker, then there’s less room to negotiate. However, you can rest assured that the complete picture of the chiropractic office’s financial health has been taken into account to generate a fair asking price.

4. Location

If real estate is included in the business purchase, then take a good look at the office space. Ensure that the location is what you envision, and consider any updates you may want to make. If the office is on a lease agreement, find out how much time is left on it and whether or not you’ll need to negotiate new terms with the landlord.

Ready to get started? The professional business brokers at Sunbelt can help! We have years of experience connecting buyers with chiropractic practice owners preparing to list their businesses for sale. Find a Sunbelt Business Brokers office near you to take the first step in your journey towards becoming a business owner!