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Valuing and Selling a Practice

Sullivan, Walter MD, JD

Journal of Craniofacial Surgery: November 2012 - Volume 23 - Issue 7 - p S4–S5
doi: 10.1097/SCS.0b013e31825b3b4c
Original Articles

Surgeons, as they contemplate retirement, wrongly believe that their practices do not have financial value. In fact, a well-organized efficiently functioning office with an emphasis on excellent service in combination with a constant stream of patients make it financially ideal for the new surgeon. Being able to assume such a practice can be a very smart financial decision. The practice’s worth can be determined by a careful analysis of the practice financials and an evaluation of the functioning of the office and employees. Purchasing such a practice can be, economically, a very smart move by a new surgeon. Payments are made over time at a rate that allows the surgeon to make a good living, leaving him with real equity once the payments are complete. The departing surgeon, who had spent years building this successful practice, gets some of this value back in the form of an income stream to supplement his retirement. This process should be considered in virtually every case. Do not just “close the door.”

From the Levine Garfinkel & Eckersley, Las Vegas, Nevada.

Received April 17, 2012.

Accepted for publication April 17, 2012.

Address correspondence and reprint requests to Walter Sullivan, MD, JD, LLM, Levine Garfinkel & Eckersley, Las Vegas, NV; E-mail:

Dr Sullivan is proudly Dr Kawamoto’s second fellow, is a Life Member of ASPS and ASAPS, practices Health Law, and is the President of the Plastic Surgery Transitions, Inc, advising physicians on all practice and legal matters.

The author reports no conflicts of interest.

© 2012 Mutaz B. Habal, MD