The Proven Process

How can you sell your practice without knowing what it is worth? First, we must collect and organize all pertinent information about your practice from historical profit and loss statements, tax returns, and balance sheets to provider production, employees, patient counts, payor types, and tangible assets to name a few.

Our dedicated team of consulting, transition, real estate, and financial experts will perform an initial review, additional questions will be asked that will enable our professionals to understand, identify and unlock hidden value in your practice that will be attractive to the buyer pool.

Starting on the right foot is important and recasting your practice’s financials to identify items or expenses that are not related to the income production of the practice and will not be moving forward with the asset is an essential step to maximizing the value of your company. These adjustments often include, but are not limited to, the owner’s salary/compensation, expenses over market norms, travel, continuing education, one-time professional fees, and owners’ discretionary spending.

Our process sets your practice up for success by presenting the cleanest, clearest true profitability of your practice ultimately providing confidence in buyers and resulting in top-of-market pricing. Additionally, Xite Practice Sales clients receive our proprietary Prescribed Site Analysis TM which identifies competition ratios, referral networks, patient base, insured density heatmaps and other market share analysis ultimately illustrating stability and future growth opportunities of the practice for buyers.

Know your buyers. Our customized national database allows our marketing team to direct market your practice to the right buyer group whether your goals are to partner with a DSO or Corporate Group and stay on for a few years until the capital event, or retire and sell 100% to a private doctor in your community.

Through our proven process we gain insight into your operations which allows us to put your practice in front of the right buyers. Xite Practice Sale’s Offering Memorandum consists of a comprehensive overview of your practice attracting qualified buyers, ultimately streamlining the marketing process.

We require every buyer to fill out our Buyer Information Form giving us important details about the financial wherewithal of the buyer and if the buyer has the ability and experience to perform procedures at the practice and ultimately fill the shoes of the seller. Our goal is to place your practice in the middle of a competitive bidding situation with multiple qualified buyers.

Each transaction is unique and multifaceted, negotiations are not just about economics, it is also important to recognize the quality of life, surety of close, liability post-close, and the transition responsibilities of the seller. We educate our clients on deal terms and quantify the value of those negotiating points allowing our sellers to make informed confident decisions.

YOU ARE IN CHARGE. Our job is to educate our clients, negotiate the best transaction possible, provide our advice on decisions, lay out a successful strategy, fight for every penny and perform at the highest standards, but ultimately, we work for you, you make the decisions, and you are in charge.

Once the Intent of Interest (IOI) or Letter of Intent (LOI) is agreed upon and executed, meaning the terms of the sale are accepted by both parties, our work is only 50% completed. Next comes the Asset Purchase Agreement (APA) which is usually created by the seller’s attorney.

In parallel to the drafting and negotiations of the legalese of the APA, additional due diligence is performed by the buyer and their team. Depending on the buyer the team could consist of the buyer’s attorney, consultant, lender, and CPA, or if the buyer is a Corporate, Private Equity, or Venture Capital Group they will have an inhouse team tasked with gathering and evaluating up-to-date financials, practice reports, accounts receivable, real estate (purchase or lease) and the list goes on.

Our team will play a crucial role in tracking the process flow of this information, updating all parties involved, and keeping the deal on track. Time kills deals, if progress is not happing at a reasonable pace, closing probability can drop significantly due to deal fatigue.

Pushing a deal is something that many sellers don’t recognize the immense time commitment required to accomplish. It is nearly impossible for a seller to continue to run their company and have the time, resources, and the experience to effectively close a deal from start to finish. If your practice or company declines during due diligence due to limited bandwidth, this could mean a re-trade of the deal, extended timeline, reduced economics, or worse, a terminated transaction.