The Practice Manager's Guide to Buying a Practice - McMasters ...

We expect the GP to make an extra $30,000 a year as a result of buying in.Sale 5 2007A profitable 5 GP practice located in semi-rural location was sold to the landlord pharmacist for$180,000. The vendor GP has agreed to stay working there and to pay a 50% management fee forfive years, along the lines of corporate sales.The pharmacist kept the premises occupied, which adds to value, and retained a close source ofprescriptions by buying the service trust and then agreeing to provide services to the GPs. Thepharmacy is located in the same building.Sale 6 2007I expect this is the last sale to a corporate health provider that I will see.A corporate vendor paid $200,000 for the service entity of a large female health practice located in afashionable inner eastern suburb. The vendor is a fifty year old female GP who has practiced fromthe site for more than twenty years. The vendor signed a five year service agreement.The vendor owns the premises and she will also receive the benefit of a very good lease from apublic company tenant. This will increase the value of the premises should she wish to sell them.Sale 7 2007A one doctor practice in a country town sold for $50,000 all up after the untimely death of originaldoctor. The practice is easy commuting distance from Melbourne and was bought lock stock andbarrel as a going concern: a friendly larger local practice staffed it with a GP until a purchaser couldbe found.Sale 8 2007A foreign trained doctor bought a 20% interest in a rural practice for $90,000. She will make at leastan extra $60,000 a year profit from being an owner. She trained at the practice and had a highregard for the other doctors and was not interested in working at another practice in the region, ormoving to another practice.Sale 9 2008A five doctor practice was for sale in Geelong for $100,000, deferred for one year. The buyer willalmost certainly make $100,000 a year from the service trust. No buyer can be found. Apart from thegeneral reasons explained earlier, the particular reason appears to be a concern regarding signing anew lease and concerns as to what would happen if the doctors left the practice.Sale 10 2008A half share of a Mornington Peninsula practice was for sale for $40,000. It appears that an assistantin the practice will buy the half share for this amount.51