Time as an Asset

Solitude Amidst Splendor – 2019

Sierra Nevada, NV

Process and Phases

The transition from your career is a process that’s usually lengthy. When it is well-planned, it is typically executed in sequential phases that are comprised of tasks that build upon the previous ones.

The most challenging of these phases is usually the first. This is when you come to terms with the fact that your transition from practice is in your foreseeable future. It is natural for reactions to vary widely from joy of anticipation to apprehension and perhaps some stress. Often, the experience is a blend of both.

Regardless of how you perceive this phase of your life, you will probably experience a sense of loss that is accompanied by excitement about great anticipations. It is beneficial to think of this process as what it really is: a transition, rather than a “retirement.” The term transition emphasizes its purpose: to experience renewal and fulfillment.

Retirement closes doors; a transition opens new ones.

In order to optimize its benefits, it is very beneficial for you to take timely control of the process rather than finding yourself reacting late to the challenges you will encounter.

Some of these challenges will present themselves as new experiences. For many years you have been comfortably familiar with practicing with skill, experience and confidence. Now you are at the beginning of a major life transition, discovering unfamiliar matters you have to deal with as you wonder what else lies ahead.

The cumulative impact these concerns can have on you will often delay your decision to take the first step.

For these and other reasons, that first step is often the hardest and is easy to postpone. However, once taken, you will find yourself progressing solidly on your path.

The First Step

This is your personal acknowledgment of what you are experiencing and the likelihood of additional, new challenges ahead. You will probably recognize, correctly, that this process requires a methodology that will naturally empower you to lead yourself, your family and your staff to accomplish your goals. 

It is wise to seek guidance from diverse professionals that will comprise your external transition team. It is also necessary to create an internal transition team that is comprised of current members of your staff. This is essential to get the support you need to accomplish your transition smoothly while you are taking care of your patients with excellence and safety.

Your transition is a process, not an event. The methodology to accomplish it consists of several plans and phases that build upon previous ones and flow in a natural, sequential manner.

The First Plan

The focus is on preparing yourself and your family. It is best expressed by the creation of your Post Career Lifestyle Plan. This is undertaken privately with your spouse and described in writing. It should include a preliminary budget.

The Second Plan

Next is the creation of your Post Career Financial Plan, which is different from your retirement plan. This should be done with the advice of a financial professional, such as a Certified Financial Planner. Its purpose is to determine whether your financial resources will support your lifestyle plan. 

If it does, you can proceed with confidence. If it does not at the present time, you can make adjustments in your lifestyle plan and/or your financial resources. This latter concern may have a direct impact on your desired time to stop practicing, and whether you will do so completely or in a staged fashion.

The Third Plan

The purpose of the End of Career Transition Plan is to prepare your practice for a succession or sale to a private equity firm. It applies to solo or group practice. 

This overall plan reflects a methodology that is comprised of three phases.

The first is to undertake an objective evaluation of your practice to ensure that it’s functioning optimally from an operational and profitability perspective.

The second is to consider ways in which you can optimize its current profitability and value. This can be done in various ways that will also prepare it for a prospective buyer. Examples are adding services, particularly those that are recurrent in nature.

The third is to prepare the practice to offer it for a private succession sale or to a private equity firm. This will include an evaluation and possible modification of physical space, staff, scheduling, etc. You will also need plans and preparation for the introduction of your new associate. Examples are various forms of credentialing, introduction to the community, etc.

In the case of a private sale or perhaps an institutional purchase, you will need to determine the criteria that will guide the recruiting of an associate as well as the general terms of a contract offer.

These tasks are essential to prepare your practice to “go to market.” At this point you will have compiled a wide variety of documents that are necessary for a prospective buyer to undertake due diligence. This data is also essential to undertaking a third party valuation of your practice. It is best to have all this prepared in advance of announcing that you are offering to sell your practice.

Your Time, Your Tool

Physicians employ a broad range of approaches to begin preparations to transition from practice. Some delay too long so that there is little time to prepare. This can severely limit your options. Then there are those who begin to plan in a timely manner. This will typically occur when they begin to foresee their end of career, often about five years in advance. In this latter instance, there’s a greater opportunity to implement a methodology in a timely manner. This favors evaluating what is often a broader range of opportunities and options.

To delay is to forgo the opportunity of using time to your advantage. To be proactive is to use your time as an effective tool to accomplish your goals.

Plan. Prepare. Prosper. _TM 

Updated: October 27, 2023

PS: Would you like to learn more about how to transition from your practice? I would like to help you. I provide practice transaction services that are tailored to your specific needs. Click here to request an introductory conversation.

Nature in Transition –  2013

Colorado