When physicians are thinking selling their practices, there are several issues to consider, according to a Medical Economics article.
Here are eight questions physicians should ask when considering a sale:
• What are the goals of the selling shareholders?
• Are they ready to retire and thus bring in a younger generation of doctors?
• Following the transaction, will they become employees of the buyer or enter into a professional service agreement with the buyer?
• What are the goals of the buyer and seller following the acquisition?
• What are the attitudes of the buyer with respect to practice governance, practice finances and operational issues?
• What are the legal implications?
• How does the buyer view current physician leadership and how will those roles change in the future?
• What are the tax implications of the purchase or how much will the selling shareholders actually realize after taxes?
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