When Selling Your Practice, What About the Real Estate?
When selling your practice, be sure to consider if and how the real estate will transfer, said Robert E. Wiggins, MD, MHA, physician administrator for Asheville Eye Associates in Asheville, NC, during the American Academy of Ophthalmology’s 2018 annual meeting in Chicago.
Dr. Wiggins pointed out the pros and cons of owning/selling within the context of a senior physician selling to a younger colleague:
- Pros of new ownership for younger colleague: Supplemental income and equity growth provides a nest egg for retirement.
- Cons of new ownership for younger colleague: May require significant cash outlay or taking on substantial debt; may be a poor investment if the practice is in a bad location or may need to be replaced due to practice growth.
- Pros of senior selling: Creates a sense of a true partnership in the practice and helps bind the new physician to the practice.
- Cons of senior selling: Less control and financial benefit.
Dr. Wiggins added that rising interest rates may require workarounds to promote buy ins that are fair to new and current owners.
Wiggins R. Selling real estate. Talk presented at: AAO 2018 annual meeting; October, 26-30, 2018; Chicago.