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The Broker

MJ- Wales - "I own a mainly SA practice with a T/O of £850,000. My assistant who has worked for me for 5 years wishes to buy my practice, because the corporates keep enquiring whether I want to sell and I have heard that the prices paid are very good I am not sure what to do, can you help?"
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A: This is always a difficult situation, but you have to think of your own situation first. However, we advise that you go ahead with the preparation to sell the practice and when all of the sales information and financials are completed allow your assistant to have sight of the sales memorandum. They must still sign a confidentiality agreement first to protect your interests. If you give them a week to see if they can get provisional agreement on the level of funding they can obtain and the level of the offer they would be looking at. Meanwhile you broker will have advised you what to expect if you put the practice on the open market. In most cases in higher value practices the corporates will have access to immediate funding and be prepared to pay a higher price than most private individuals can match. You then have to make a decision on what route to take, but at least you have dome the honourable thing and given them a chance of purchasing.