While more than 5,000 GPs are currently in training, a similar number of practising GPs are over the age of 70 and are likely to reduce work commitments in the near future. As a result, we are likely to see many changes in practice ownership and the nature of the GP workforce.
At Alecto Australia, we are seeing many older GPs owners who are interested in scaling down their work commitments or selling their practice altogether. For both buyers and sellers of GP practices, the ‘acquihire’ concept may be worth considering as an option.
What is Acqui-hire?
Acqui-hire is when one company buys out the other one specifically for their employees. It’s a popular strategy for buyers because a good acqui-hire can bring in a lot of new talent. Plus, the employees have experience working together as a group and can ensure the smooth running of the business.
The concept also works well for individuals wishing to sell their business while continuing to work as employees.
How does Acqui-hire work in General Practice?
In General Practice, Acqui-hire provides the opportunity for both buyers and sellers to get the best of both worlds: Sellers can decrease their work commitments and cash in on the ‘business’ side of their practice. This allows them to invest a lump sum of money while continuing to draw ongoing earnings from their work. Buyers can avoid many of the risks associated with establishing new practices by buying the key parts of an existing operation.
3 benefits for current GP owners (sellers)
- GPs who are scaling back their hours can remove the burden of the day to day tasks involved with running their own business (administration etc)
- GPs who own the property can have a secure lease with new operators, or re-lease the building if the practice re-locates to a new site.
- Receiving a lump sum payment before retirement, may provide owners with tax advantages and the ability to invest.
3 benefits for future practice owners (buyers)
- Buyers have the promise of an immediate patient base – providing they can retain the established GPs.
- Buyers have the choice of maintaining the operations in the current practice location or moving to a nearby practice location and amalgamating the two or more clinics
- Acquiring practices can reassure incoming GPs that they will be part of an established team – making it much easier to recruit GPs
Interested in Acqui-hire or want to know more? Register your interest with Martina at info@alecto.com.au if you want us to keep you in mind for opportunities.