The Hidden Value in Your Practice:
What Appeals to Buyers Beyond The Numbers

Published November2024

When preparing to sell your practice, it's essential to recognise and emphasise the potentially overlooked factors that can enhance its appeal beyond just the financial metrics. There may be considerable hidden value within your practice that will help you stand out to interested buyers.

Here are some key areas to focus on to uncover the full potential of your practice:

Client Relationships

The strength of your client relationships and retention rates are a significant selling point. Loyal clients demonstrate stability and trust in your services. 

• Client Retention Data: Provide detailed retention data showing the longevity of your client relationships.
• Client Testimonials: Testimonials from satisfied clients spotlight your practice's reliability and quality of service.

Diversified Offerings

The extra service offerings you have above your competitors can represent great value for potential buyers. An extended portfolio of services demonstrates an understanding of client needs and a focus on resilience.

• Service Portfolio: Create an overview of the services you offer beyond standard offerings.
• Revenue Breakdown: Provide a breakdown of revenue by service line to demonstrate the diversity and potential growth areas within your practice.

Your Team

The expertise and stability of your team not only display value but your business commitment to their development. Your team will be important to a smooth transition and demonstrating a culture that supports them will set the stage for that to continue post-sale.

• Team Profiles: Provide detailed profiles of key team members, focussing on their qualifications, experience, and successes.
• Employee Retention Data: Share data on employee retention rates to demonstrate team stability and satisfaction.
• Professional Development Programs: Demonstrate the importance of professional development and training programs enhancing team skills and expertise.

Systems and Technology

A business that has been able to evolve and adapt over time is always impressive. Highlighting systems and technology implementation and their positive impacts can boost the appeal of your practice. Buyers (and clients) are less attracted to practices that sacrifice technology to stick to the old ways.

• Measurable KPIs: Provide metrics showing how new systems have improved efficiency. Demonstrate increased efficiency or increased client outcomes.
• Tech Inventory: Document all the technology and software systems you use, emphasising those that streamline operations and enhance client service.
• Future-Proofing Initiatives: Highlight your forethought with any initiatives that address potential future issues or opportunities. For example, adopting AI tools or implementing cybersecurity measures.

Your Brand

A well-established brand and strong market presence can be a hidden gem in your practice's value. Buyers are attracted to practices with a reputable brand that resonates with clients and stands out in the market.

• Brand Recognition: Headline any awards, recognition, or positive media coverage your practice has received.
• Marketing Initiatives: Present your marketing strategy and initiatives that have successfully built your brand and attracted clients.
• Community Involvement: Emphasise your involvement in community activities or industry associations, which can enhance your practice's reputation and visibility.

 
To discuss these findings in more detail and what they mean specifically for your situation, contact DMY’s Directors below.

The Wrap

Value in your practice can be shown by more than numbers on a page. By showcasing the "hidden" values you can significantly enhance the appeal to potential buyers. Strong client relationships, diversified service offerings, a skilled team, good systems, and a strong brand present a compelling case that goes beyond financial performance.

To discuss this article further and what it may mean for your situation, contact DMY’s Directors below.

Mark Emney

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

Daniel Jones

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