Finance and Accountancy Briefing
Preparing a Sole Practitioners Practice for Sale
In general however, sole practitioners tend to fall into two principle categories. The first is up to about £100,000 of turnover often working from home. The second is from about £100,000 up to £250,000 maybe £300,000 working from local offices. These two groups encompass the vast majority of sole practitioners. There is a third group that is quite diverse, and has gone beyond the point of most sole practitioners. They can be managing anything from £300,000 to £400,000 upwards, up to several million pounds.
Preparation for the sale of a practice in the first two categories is often totally ignored. We regularly see practices coming up for sale where the event has been triggered by necessity rather than design. It is not uncommon to find that this is a matter of illness, family issues, leases coming to an end or senior staff retiring. Often the sole practitioner is ill prepared for this event in order to ensure a proper sale. Information memorandums are almost unheard of. Information that would be required by a buyer is often not immediately available. Just as importantly, it is the preparation of the practice to be at its most attractive at the eventual point of sale. The practice should be prepared well in advance of any actual sale in order to ensure that all the necessary items, in order to undertake the process, are in place.
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