Partnerships:

Due to increasing business size and value, and the need for succession planning, owners with viable businesses are seeking "junior" partners to join them. Likewise up and coming professionals wish to own larger businesses.

Such sales of equity will necessitate the development of industry-accepted principles and finance approaches for succession.

Practices have used multi-practitioner professional partnerships to attract appropriate staff and reward specialised skills. Professional practices are seeing the evolution in the admission of junior partners. Also, with almost 60% of existing pharmacy practitioners ready to retire in the next 10 years, partnerships will become a practical way for the profession to retain their skills. Likewise, across other professional industries, partnerships are becomming a viable means of rewarding and securing key staff in the business.

Valuations for succession purposes require a different approach. While the valuation method might be similar, there are a number of specific questions. These include:

• Asset structure and maturity;
• Consultant roles and contracts;
• Guarantees granted by partnership to financiers and other partners;
• Family law matters;
• Contracts held by the practice;
• Retirement trends and plans; and
• The age and influence of existing partners.

Practice4Sale provides a listing service for professional partnership opportunities. Make use of our services to identify potential candidates in a confidential and secure manner.

For more information about listing a partnership on Practice4Sale, please contact one of our consultants on 03 9853 7452 for a confidential discussion.