The seller truly needs to know and realize when it's time to go. There is a transitional period of time directly after the sale. It means exactly that. The practice will be transitioning from one owner to another, but for patients it means transitioning from one chiropractor to another.

Generally, transition periods after a settlement range from a few weeks to three months or so. We've all read sales pitches where we see that "the doctor will stay for smooth transition." When I purchased my new practice, it should have read something to the effect that "the doctor will stay forever." There will come a time when the buyer and the seller should be confident that all is working well and it's time to part. For some, it's sooner than later.

Transition times can be contractual or can be shortened or lengthened, depending upon the experience of the buyer. The transition is the time that you as the seller spends not only building a positive picture for your patients regarding the new owner, but also quietly and discretely educating the new owner to your practice style. There is a lot to learn about the practice from the point of view of the buyer. Regardless, there is a time when the seller must get out of the way.

The Money

It is usually the financial end of the sale that brings about the most anxiety for both buyer and seller. In some cases, such as the sale of my practice, financing became an issue for the buyer. In the long run, I decided to "hold the paper" on this buyer. I took a down payment and, together with an accountant, arrived at a payment schedule where monthly payments were made until the sale price was satisfied. May I say that this method is not efficient and is fraught with peril.

If you must utilize this form of agreement, it is imperative that you obtain a full credit report from the buyer. If the buyer is to have a co-signer on the agreement, you must obtain a full credit report on the co-signer as well. Failure to do this may be hazardous to your wealth. In addition, for those who must use this method of sale, the contract must contain language that holds all buying signers responsible under state statute where the sale took place. If a buyer or a co-signer refuses to give you permission to obtain a full credit report, find another buyer. It might be depressing. It might cost you more time. In the long run it will save you an amazing amount of money and angst.

The process of buying or selling is truly dependent on so many factors. Most issues can be easily resolved. Many buyers and sellers have little experience in this type of transaction and in some cases, don't even know the issues until they are deep into the process. Although the broker can guide both seller and buyer through the big issues of price and financing, smaller issues require timely investigation as well. The transition brings out some of those small issues. The biggest factor in my opinion remains the same. If you're the seller, know your buyer.

Dr. Gary Rubenstein has been in full-time practice since graduating with honors from Palmer College in Davenport in 1983. He also teaches neurology at a local junior college. He is currently working on a book dealing with the pitfalls and promises of buying and selling a chiropractic practice.