- Got a great question from a doc that said, “Listen, I'm planning to retire in 2021 or 2022. I'm already there. I'm just finishing out. I'm starting the transition process now.
- “Is this the time to take an early retirement? Or is my effort going to be worth it, to go ahead and make this transition through the COVID crisis now?”
- And I think that really depends on your situation. If you are looking to your practice, the sale of your practice, to provide the next stake for your retirement, I think you need to think a substitute substantially about what your practice is going to be worth.
- If you don't transition, who's going to buy your practice if you shut down and never reopen? All you have, your patients, are going to go somewhere else.
- The records aren't going to be worth a dime. All you have is a couple hundred thousand dollars worth of equipment.
- Now if that's all you want to sell your practice for is a couple hundred thousand dollars, then maybe closing your practice and not reopening and selling it in a year or two might be the option for you.
- Maybe you want to contact some potential brokers about selling now, although selling in the middle of a pandemic may be a fire sale as well.
- It all depends on your situation – if the sale of your practice doesn't matter to your retirement funds, that may not be an issue.
- If you're banking on a million or $2 million from the sale of your practice, in order to fund that final nut of your retirement, then you're going to have to make this transition or you're simply not going to get any reasonable price for your practice.
- Because if you don't sustain that the primary value of your practice, the main majority value is the goodwill of your patients. Your equipment isn't worth anything.
- So if you don't reopen and you don't make this transition, and you don't keep continuity with your patients, your practice is going to be worth nothing.
- I hope that helps you make the decision on what's right for you as we go through this crisis.
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