Practice Premises: Issues to Consider When Selling

Published February 2025

Dealing with your practice premises is an important area to consider when selling your practice.  Here are some key considerations as you embark on your sale journey:

1. Keep an open mind as you go into the sale process

The outcome regarding your practice premises is heavily influenced by the situation of the successful buyer. Some prospective buyers may already be in, or close to, your location and may not need your premises. Others may want to move into your area and thus be keen to retain them. Or they may be close but don’t have spare capacity in their office but you do… 

2. If you lease your premises

Consider the risks associated with signing up to a long term lease if you are planning on selling in the next 12 months. If the buyer does not need to take on the premises there is a potential ongoing lease liability that will need to be paid for by someone.

3. If you own the practice premises and want to sell them

Be careful tying this to the sale of your practice. While it is good to give buyers the option, conflating the two into a single transaction with no flexibility may deter prospective buyers and lead you to not achieving either outcome.

4. The initial Retention period 

Keeping your practice in its current location for 12 months aligned to the retention period is a common outcome we see which helps minimise disruption through the initial transition to new ownership.

5. Relocating the practice to the buyer's office

Equally, relocating the practice to the buyer’s office, if nearby, can bring immediate benefits in terms of building a “one team” culture and helping your team members integrate into their new home.

The Wrap

In summary, there is no one single solution that works for every sale.

There are pros and cons to consider as well as the context of the seller and their premises, and the buyer and their premises. The outcomes can also vary considerably depending on whether the practice being sold is in a metro or regional location. Keeping an open mind and carefully weighing up the options as part of the overall evaluation of buyers will help sellers make the best decision.

If you are thinking about selling and want to discuss the options regarding your premises reach out to us below:  

Mark Emney

Director

Mobile: 0434 079 530
Email: mark@dmyassoc.com.au

Daniel Jones

Director

Mobile: 0401 493 773
Email: daniel@dmyassoc.com.au