In today’s Your Next Big Move episode, Zoran Sarabaca talks with Larry Green. Larry specializes in selling medical businesses. He’s been a business broker for 20 years, and the last ten has been focused on selling medical practices.
Larry shares about the current medical field; there’s a shortage of doctors in Australia for many reasons, including the lockdowns. Also, many practices are transitioning from bulk billing to a hybrid model that incorporates private billing to make ends meet and to spend more time with each patient.
Why do doctors sell? Most of the time, they’ve been running a practice and seeing patients, which can be a tiring double role, so many doctors choose to keep seeing patients but sell the practice to a buyer. This is a plus from the point of view of the buyer since it will mean more stability in clientele. Other sellers are retiring, and a few are relocating.
Also, Larry shares why a buyer should usually avoid making changes after acquiring a medical practice.
When Larry started selling medical practices, many of his buyers were IMG’s (international medical graduates) who had been required to work in regional locations for several years and were approaching the end of their period of moratorium needed.
These buyers and many others seek to practice in metropolitan areas, so it’s a bit harder to sell practices in regional areas compared to those in Sydney or Melbourne.
Zoran and Larry talk specifically about radiology practices, which tend to be heavily corporatized, have expensive equipment, need highly qualified staff, and are currently recovering from reduced patient numbers during the lockdowns.
Larry gives us excellent advice about what to look for as a buyer in this market.
Anybody running a medical business or contemplating buying one will benefit greatly by listening to this conversation.
In future episodes, we will be covering all aspects of Mergers and Acquisitions, buying businesses, selling businesses, exit strategies, and numerous other subjects that will help you gain a better understanding of business purchasing, succession planning, and many other aspects of business ownership in today’s market.
Timestamps:
[0:00] Intro
[1:15] Current Analysis of the Medical Marketplace in Australia
[6:20] A Buyer’s Considerations of a Practice’s Billing Model
[7:30] Why Do Doctors Sell Their Practices?
[9:00] Patient Retention through a Sale
[13:28] The Financial Impact of Tele-Health and Remote Consultations
[17:11] Doctors Who Sell and Stay
[19:40] A Breakdown of the Buyers
[21:17] Regional Practices Versus Metropolitan Practices
[30:55] An Typical General Practitioner’s Profit and Income
[41:29] What Buyers Are Looking For And Also Should Look For
[57:23] Buying a Radiology Practice
[60:40] What about Specialist Practices?
[62:46] Advice for Sellers
[73:51] Discovery and Due Diligence
[79:12] Wrap-up
[79:45] Outro
Connect with Larry on LinkedIn – https://www.linkedin.com/in/larrysgreen
Or call 0414-824-333
Connect with Zoran on LinkedIn – https://www.linkedin.com/in/zoran-sarabaca-bba2a38/
