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THINKING BUSINESS
a blog by Chris Barrow

"Hello - I'm your new boss"

Writer's picture: Chris BarrowChris Barrow




When I work with a client who is buying their first (or subsequent) practice, part of my onboarding advice is to warn them that the team they are buying will most likely be gone within the first three years.


I was reminded of this rather gloomy prediction the other day, when "celebrating" three years of ownership with a previously single-handed practitioner who bought a multi-chair practice in the same town from a "retiring Principal".


In fact (and to disprove the absoluteness of my theory) there is just one of the original team left - and that's a self-employed clinician. Everyone else has been replaced.


As frequently happens in acquisitions, the original Owner had "agreed to stay on to see his patients" and had turned into the saboteur:


  • That would never have happened if I was still in charge;

  • I'm not happy with all these fangled new ideas;

  • Too much change - there was nothing wrong in my day.


That sniping, as well as convincing grumpy TUPE'ed team members that progress is inevitable, makes for a lot of work when you have a business to build - and I've been around long enough now to know that, in the majority of cases, the original team decide (are encouraged) to move on.


The paradox is that you can't do anything about it as you buy the business, because of said protected rights - so it just comes with the package.


Exceptions exist, of course they do, but I'm always insistent that part of any due diligence process is not just looking at the numbers but also the team you are about to purchase.


This, to establish the level of hassle you will have to deal with when you walk in the room and announce yourself as the new Owner, looking at the body language and facial expressions in an attempt to determine who you will have to keep an eye on, even when your back is turned.


Caveat emptor.



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