Buying an existing practice or setting up a new practice can be daunting. Surrounding yourself with professional experts can help your journey to be as smooth as possible.
In this article, Finance Specialist, Ali Joyce, from Credabl explains which advisors can help you through the process, and the kind of assistance you can expect to receive.
Accountant
When acquiring a practice, it is essential to set up all structures correctly, right from the beginning. This will help protect you from being stung with taxes you could have avoided. Getting advice on what is right for your specific circumstances is also incredibly important. What works for your business, may not work for another. An accountant can discuss the pros and cons of the many entity types, such as companies, and trusts versus being a sole trader. Essentially, the primary outcome is to maximise tax deductions and reduce the tax you pay. An accountant can also help your future tax plan and map out your tax instalments, so you don’t get hit with a big tax bill after your first year of business.
Financial Planner
Engaging a financial planner is key step when buying or starting up a practice. They can provide advice around your short and long-term financial goals, and can also work alongside your accountant and financier with tax planning, asset allocation, risk management, retirement and estate planning. As a common part of the process, a financial planner will review your life and income insurance, ensuring it is adequate – this is vital when you are potentially taking on more debt to own a practice.
If you want to buy commercial property in your self-managed super fund, (SMSF), it is a requirement that you seek financial advice. In some cases, when you are taking out goodwill debt for buying a practice, you will also be asked for adequate life and income insurance to cover the debt and loan repayments. This is where a financial planner can help.
Regardless of who you turn to, remember to always check their credentials and whether they need to be licensed to provide the advice
Lawyer
A lawyer will assist you with setting up any legal documents. This can include your trust deed, partnership agreements, shareholders agreements, lease agreement, employee contracts, and also business purchase contracts. Lawyers can also assist with reviewing any documents you have received from third parties. Investing in the right advice upfront can potentially save you from unexpected and difficult situations in the long run.
Buyer’s Agent
A buyer’s agent, or buyer’s advocate can help you find a commercial property to buy, and/or help with negotiations. The key difference between a buyer’s agent and a real estate agent is that they work for you, not the seller. It’s their job to help you find the most suitable property, in the right location, at the right price and negotiate with the selling agent on your behalf.
Business Broker
When wanting to buy an already established practice, the best place to start is to contact a local business broker who specialises in selling medical practices. When you share with them the type of practice you are after, they will either show the current suitable practices for sale or register your interest for upcoming practices. The upside of going through a business broker is that they sit in the middle between you and the seller. They will provide you with a full information memorandum on the business, financials, and give you a price guide if you want to put an offer in.
Settlement Agent
Using a settlement agent when buying a practice or commercial property is an absolute must! They will work with you and all parties involved to make the settlement happen on time. A settlement agent will also ensure all relevant funds are handed over, all relevant forms are lodged for stamp duty if applicable in your state, and that if there is any debt on the business you are buying, it is cleared and relevant charges are lifted to ensure you are not liable for someone else’s debt. Business settlements can be a little different from a standard home loan settlement, so it is worth considering a settlement agent who is experienced in this field.
Insurance Broker
Contents insurance, building insurance, workers compensation, cybercrime insurance – the list goes on! Instead of having to call around for quotes and trying to figure out what you do and don’t need on your own your insurance broker, who has access to multiple insurance providers, can explain the necessities for your business. When funding a commercial property, lenders will always ask for a copy of the certificate of currency and, on occasion, will ask for contents insurance details too.
Specialist Lender
When it comes to buying or setting up a practice, using a lender that understands your industry will make the process all that much easier – from helping connect you with all of the above experts and industry suppliers to helping you understand the loan structure, repayments and affordability. As an eye health professional, your time is incredibly valuable, so using a specialist lender, such as Credabl, will take the stress out of the process with minimal paperwork and quick turnaround times.
The Credabl team can also introduce you to professional advisors who specialise in looking after the finance and practice needs of eye health professionals.
Regardless of who you turn to, remember to always check their credentials and whether they need to be licensed to provide the advice. Plus, look for testimonials and recommendations where they have executed the same or similar services for a comparable eye care practice owner.
Visit credabl.com.au to find out more.
