New episode of Beauty and the Biz podcast explores important decisions about hiring vs. selling to grow or exit your practice.
Should you sell your practice, add an associate, or close the practice? If your practice has reached an inflection point due to growth, economic factors, or physicians approaching retirement, how do you know what is the best plan for your practice to ensure continuity of care for your patients, while protecting the legacy you’ve built over the years?
As the plastic surgery and aesthetics industry evolves, and the population of plastic surgeons continues to age, many surgeons are weighing the options for the future of their practices. Whether you’re thinking about scaling up by bringing on a new associate, transitioning to a partnership model, or planning an exit strategy, it’s critical to understand the pros, cons, and key considerations involved.
Steve Look, CEO of Paradigm Search Group, recently joined renowned consultant Catherine Maley, featured in The New York Times, Newsweek, ABC, NBC News, and more, on her popular podcast, Beauty and the Biz. Together, they tackled the pressing issues surrounding practice succession, including recruiting new talent, selling a practice, and strategies for growing a successful plastic surgery practice.
“I’m excited to have joined Catherine on Beauty and the Biz to discuss the critical decisions plastic surgeons are facing today,” said Look. “It’s a hot topic for many practices, and I hope the insights we shared will help surgeons feel more confident in planning for their practice’s future.”
Look shared expert insights into these crucial practice planning decisions faced by many plastic surgeons today:
Key Options for Your Practice’s Future
- Bringing on an Associate
One of the most popular routes for surgeons who wish to grow their practice is to hire a new physician associate. This can help ease your workload, introduce new expertise, and eventually create a pathway for the associate to take on a greater leadership role in the practice.- Pros: A smoother transition over time, greater revenue potential, and the ability to mentor younger talent.
- Cons: Increased administrative duties, finding the right fit can take time, and added overhead.
- Partnership or Buy-In Model
Another option is bringing on a partner or offering an ownership stake in your practice. This allows for shared responsibilities and a collaborative approach to running the business.
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- Pros: Shared workload, financial security, and the potential to eventually exit gracefully.
- Cons: Finding a compatible partner can be difficult, and disagreements over the direction of the practice can arise.
- Selling or Exiting the Practice
For those considering retirement or moving on from private practice, selling the practice entirely may be the best solution. However, this decision involves careful planning to ensure the sale is profitable and that your legacy remains intact.
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- Pros: Immediate financial gain, no more day-to-day management, and the freedom to retire or pursue other interests.
- Cons: The sale process can be lengthy, valuations may not meet expectations, and finding the right buyer to maintain the practice’s reputation is critical.
Key Considerations
Steve Look emphasizes the importance of having a clear vision for your practice’s future, whether you’re expanding or preparing to exit. Here are a few tips to keep in mind:
- Start Planning Early: Transitions can take time, especially when finding the right associate or buyer. It’s important to start considering your options well in advance.
- Evaluate Financials: Understanding the financial health of your practice is essential, especially if you plan to bring on a partner or sell.
- Know Your Goals: Whether you want to retire, reduce your workload, or grow your practice, having a clear set of goals will guide your decision-making process.
In short, whether you’re looking to bring on new talent or exit gracefully, the decisions you make today will have a lasting impact on your practice’s success and the future of your legacy. Consulting with industry experts like Steve Look and Catherine Maley may help to ensure you’re making the best choice for the continued success of your plastic surgery practice.
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