Your Practice Sale Starts Years Before You Sell

WEBVTT

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You're listening to the PT Pintcast,

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where smart people in healthcare come to

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make noise.

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Here's your host, Jimmy McKay.

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All right,

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today's guest has seen more PT practice

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sales than anyone alive.

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I'm just making that statement.

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And somehow,

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still answers the phone himself,

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went on a call.

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He's a physical therapist who grew three

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clinics into twenty-one,

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founded Martin Healthcare Advisors,

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and spends his days helping PT owners

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turn, I think I'm ready to sell, into,

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I actually know what this company is

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worth.

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And there's a big difference there.

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He says most owners treat selling their

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practice...

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Like selling a house.

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You put it on the market.

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You wait for buyers.

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You pick the best offer.

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Done.

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Walk away.

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Throw them the keys.

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But that's not how this works.

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Not exactly.

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Buyers are not buying your past.

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They're buying your future.

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They're buying earnings, growth,

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leadership, systems, reduced risk,

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and the belief that the business still

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works after you walk away.

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So today we're asking,

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what actually makes a PT practice

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valuable?

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What kills a deal?

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Why should owners start preparing two or

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three years before they sell?

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Yeah, two to three years at least.

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And how do you know if you own

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a business or just a very expensive job

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with a logo?

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So let's bring him in.

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Welcome to PT Podcast, Paul Martin.

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Paul, welcome to the program, man.

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Yeah.

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Thank you, Jimmy.

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Great to be here.

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You probably deal with a lot of people

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in situations where you're going to ask

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questions that maybe they knew they should

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be asked.

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It's like kind of like when you're like,

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did you do the homework?

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You're like, I knew I should have,

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but I didn't.

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Then they get to you and you're like,

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I'm not letting you skate past,

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skate past that.

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So you said selling your practice is not

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an event.

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It's a process.

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So what happens when a PT owner treats

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it like an event and not like a

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process?

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Yeah,

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I think when a PT owner treats the

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sale of their business like an event,

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not a process,

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they miss out on gaining the true value

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of their business.

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They miss out on the opportunity to run

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a process whereby you put many acquirers

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buyers on the same starting line at the

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same time.

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You drop that checkered flag.

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They all have the same information.

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and then they are all vying to buy

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your particular business versus you get a

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phone call and wow,

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this company seems really interested in

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me.

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In fact, I think they love me.

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They've never said more nice things to me.

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This is my company.

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This is the one I wanna sell to.

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And going down that road can be a

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disaster because you've just given away

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the steering wheel.

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You want control of the process.

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You don't want the acquirer to have

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control of the process.

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And when you do that and when you

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treat it as such,

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you give away that steering wheel.

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So running a true professional process,

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we think, is so important.

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And we even think to the level of

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the way large investment banking companies

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run a process

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It is disciplined.

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It is accurate.

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It's providing high level materials for

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the potential acquirers.

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We bring that and we believe that should

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be offered and available to physical

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therapy businesses of all sizes.

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Well, let's start with the misconception.

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I always like to start with these because

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it's probably the most people, right?

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When a PT owner calls you and says,

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listen, I think I'm ready to sell.

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what do they usually misunderstand about

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the process that you didn't already sort

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of clear up?

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Like what do they think buyers really care

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about versus what they actually are

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looking at and gonna dive into?

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Sure.

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Yeah,

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and many times they think that it's about

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the practice and it's about historically

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what the practice has been able to do

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and the community ties that you have and

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all the different types of therapies that

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are being done in the practice.

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Those are all really important things

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until we come to the question of,

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What is your EBITDA, your cash flow?

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How much money are you putting to your

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bottom line after you pay yourself a

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salary, et cetera, et cetera?

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Because the hard and cold truth is they

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are buying that cash flow.

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And without that cash flow,

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it's really hard to sell any business,

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let alone a physical therapy business.

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So I think that's something that many

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owners don't truly get.

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And it's a rude awakening when then they

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send their information and the acquirer

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comes back and says, well,

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there's no cash flow.

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So we're not interested or whatever it may

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be.

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You said buyers are not paying for what

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an owner built the past.

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They're paying for what the company will

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do or they hope will do in the

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future.

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Explain that like I'm a clinic owner who's

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never sold a business before.

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Sure.

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So an acquirer is not going to pay

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you for what you're going to generate in

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the future,

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but they are buying your future.

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Right.

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Right?

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So they are going to pay you based

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on your historical performance.

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And typically that's the very most recent

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trailing, twelve months.

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But many owners stop there.

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Okay.

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This is what they're buying.

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You know,

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I'm going to maybe stay on a year

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or two, if that,

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but I kind of want to get out.

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What a buyer is looking for is,

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are you building your business to a

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transaction?

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or are you building it through that

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transaction and that event?

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So what we try to do is talk

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about the future and put in a very,

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very, you know, some detail,

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but very clear is where is this business

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going in the future

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to grow through that transaction it's kind

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of like you know there's a train and

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it's going to make a stop but as

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soon as you get on it's taken off

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and so you better jump on quick because

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this train is going and it's going to

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continue to grow that's how you attract

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more acquirers is to show your future

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because the past is something that they

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expect you're going to be able to show

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them

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Sure.

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You've said some owners spend more time

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really preparing their car more for a

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trade-in, less for a sale.

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What should they be detailing in their

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business if we're going on that car

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analogy?

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Yeah,

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that wasn't a nice thing for me to

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say, Jimmy.

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But it's true, right?

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But I also like putting it in those

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terms because maybe we weren't taught to

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these things.

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That's why you have a company.

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Very good point.

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No, we were not taught this.

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And physical therapy school did not

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prepare us for the business side of our

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business.

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And I think even today it does not

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prepare physical therapists for the

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business part of their job.

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Right.

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And so, no, I think physical therapists,

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when they look at preparing to sell a

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business, you know, there's many, many,

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many steps to that from making sure that

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their financials are in order.

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making sure that their operations are

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driving those financial results,

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making sure they can show how's the

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retention over the last three to five

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years.

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So knowing those things about your

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business and being able to talk about

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them,

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like you talk about what you had for

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dinner last night and how you put that

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together and all the ingredients,

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you really need to know every aspect of

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your business

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we try to teach business owners that

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because inherently they don't know that

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they're tied up every single day.

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There's the next problem.

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There's the next therapist that happened

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to leave.

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There's the next one that either is,

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you know,

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going on vacation or just got pregnant or

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whatever it may be.

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And so that there's these constant,

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so to really truly know the things that

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an acquirer wants to know about their

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business sometimes is a process.

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Yeah.

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You've said that the best time when I

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should prepare is two to three years

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before you want to sell.

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Why that far out?

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What does that give you in terms of

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flexibility or preparation time?

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What does that arm you with?

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Sure.

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Well, first of all,

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your financials have to be in order.

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And many times,

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financials are not ready for a quality of

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earnings review.

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Jimmy, have you ever had a living autopsy?

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I have not, not personally, no.

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That's how I would describe the quality of

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earnings review.

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It's an audit that's being done by the

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acquirer on your books and they're going

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to shred them.

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They're going to go into every single line

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item, every single detail.

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So it takes some time to get those

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prepared and not all CPAs and accountants

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know how to prepare those for an acquirer.

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Another big piece is,

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as you're looking at your operations

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performance,

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where are your KPIs in comparison to your

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competitors?

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Where is your productivity?

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Where is your retention rate,

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patient retention, visits per FTE per day,

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visits per new patient?

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Where do all those metrics fit?

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Because remember,

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acquirers are comparing them to the last

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really good business that they acquired.

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So they really want to see,

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so that's another preparation piece.

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Big,

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big piece that I think a lot of

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multi-clinic owners may miss is truly

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aligning the leadership group.

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When your leaders,

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and think of you as the CEO,

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and then you have, let's call it,

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twenty clinics,

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and they all have clinical directors.

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The leadership are all those people in the

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middle of that.

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It's your director of marketing.

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It's your director of administration.

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It's your chief operating officer.

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And they're managing multiple things each

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and every day.

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They have to have real standards passed

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down to them that they have to show

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they are meeting because remember,

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many of them are not treating patients.

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And then as you get closer to an

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event, an acquirer looks and says, wow,

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those six to eight people,

00:10:45.764 --> 00:10:47.025
they are important.

00:10:48.105 --> 00:10:50.148
Okay, are they under non-competes?

00:10:51.514 --> 00:10:54.336
Do we have a strategy that if we're

00:10:54.356 --> 00:10:57.058
going to roll equity forward into a new

00:10:57.099 --> 00:10:58.779
company, me as the owner,

00:10:59.561 --> 00:11:00.861
is there a way that we can do

00:11:00.902 --> 00:11:03.923
that with this leadership group as well so

00:11:03.964 --> 00:11:06.465
that we are aligned in the future?

00:11:06.985 --> 00:11:09.006
Acquires want to see alignment.

00:11:09.626 --> 00:11:11.349
And if you can go to the acquirer,

00:11:11.448 --> 00:11:12.929
we already have a program.

00:11:13.836 --> 00:11:17.460
that exists that all of our leaders will

00:11:17.500 --> 00:11:20.442
have a value at the time of a

00:11:20.481 --> 00:11:23.304
transaction and they can roll that value

00:11:23.504 --> 00:11:25.866
into equity in the new company owned by

00:11:25.907 --> 00:11:27.048
the acquirer in you.

00:11:27.707 --> 00:11:29.850
Now you have a team that's going to

00:11:29.929 --> 00:11:34.173
drive you to that second level of growth,

00:11:34.293 --> 00:11:36.375
which I described before growing through

00:11:36.836 --> 00:11:39.337
that leadership alignment proves that out

00:11:39.477 --> 00:11:40.578
and really proves that theory.

00:11:42.153 --> 00:11:44.192
Knowing these processes that you're

00:11:44.232 --> 00:11:46.933
talking about could easily change the

00:11:46.974 --> 00:11:50.514
value of a sale of a company either

00:11:50.553 --> 00:11:51.595
way, right?

00:11:51.695 --> 00:11:51.875
I mean,

00:11:51.914 --> 00:11:53.134
you could double or triple the value of

00:11:53.154 --> 00:11:55.235
a company before it goes to market if

00:11:55.274 --> 00:11:58.456
you know what levers to pull and what

00:11:58.515 --> 00:11:59.176
things to do.

00:11:59.296 --> 00:12:01.475
So Paul, million, billion dollar question.

00:12:01.696 --> 00:12:03.017
What are the levers to pull?

00:12:03.177 --> 00:12:04.496
What are the things that people should be

00:12:04.537 --> 00:12:05.856
doing to make sure that they're getting

00:12:05.876 --> 00:12:06.576
the most out of it?

00:12:06.897 --> 00:12:07.537
Absolutely.

00:12:07.697 --> 00:12:08.677
That's the secret sauce.

00:12:08.697 --> 00:12:09.618
So I'm not going to tell you that.

00:12:09.638 --> 00:12:10.077
All right, good.

00:12:10.118 --> 00:12:11.457
Yeah, we'll bleep this part out.

00:12:13.837 --> 00:12:15.798
One of the biggest areas that we find

00:12:16.119 --> 00:12:17.359
is in charge capture.

00:12:18.219 --> 00:12:21.100
That is what units are your therapist

00:12:21.200 --> 00:12:23.260
billing for the procedures that they are

00:12:23.321 --> 00:12:23.701
doing?

00:12:24.380 --> 00:12:25.660
And in many cases,

00:12:25.900 --> 00:12:30.503
therapists will choose to bill a code that

00:12:30.562 --> 00:12:33.462
is a lower paying code than they will

00:12:33.523 --> 00:12:35.764
choose to build the right code.

00:12:37.389 --> 00:12:39.071
And so that is one of the biggest

00:12:39.191 --> 00:12:39.471
areas.

00:12:39.571 --> 00:12:42.111
And when you go about it with you're

00:12:42.152 --> 00:12:43.493
providing the care,

00:12:44.373 --> 00:12:49.774
we are the most underserved asset in

00:12:49.835 --> 00:12:53.017
healthcare in terms of what we generate

00:12:54.256 --> 00:12:55.017
for patients.

00:12:55.378 --> 00:12:57.298
The results that we get in patients,

00:12:57.357 --> 00:13:00.860
we are severely underpaid for the results

00:13:00.899 --> 00:13:02.220
that we achieve with patients.

00:13:02.740 --> 00:13:05.542
So if you're doing therapeutic activity,

00:13:06.583 --> 00:13:08.703
We want you to bill for therapeutic

00:13:08.884 --> 00:13:09.504
activity,

00:13:09.784 --> 00:13:12.325
even though it's more expensive than

00:13:12.384 --> 00:13:15.046
therapeutic exercise, neuromuscular re-ed.

00:13:15.066 --> 00:13:19.125
And that's another more higher level code.

00:13:19.647 --> 00:13:21.886
That's what skilled therapists are doing

00:13:21.927 --> 00:13:22.866
with patients.

00:13:23.826 --> 00:13:26.347
Most skilled therapists are not doing

00:13:26.548 --> 00:13:28.508
three therapeutic exercises.

00:13:28.587 --> 00:13:29.908
It's putting somebody on a bike.

00:13:29.928 --> 00:13:31.048
They can do that at the gym.

00:13:31.068 --> 00:13:31.188
Right.

00:13:32.648 --> 00:13:33.970
My point is that most therapists are

00:13:33.990 --> 00:13:34.551
already doing that.

00:13:34.971 --> 00:13:36.212
They're just not billing for it and they

00:13:36.232 --> 00:13:37.014
don't think it's right.

00:13:37.033 --> 00:13:38.355
And they feel conflicted and we

00:13:38.395 --> 00:13:38.937
understand,

00:13:38.976 --> 00:13:41.600
and maybe their training has been that

00:13:41.620 --> 00:13:41.860
way.

00:13:43.222 --> 00:13:44.264
That's one big piece.

00:13:44.644 --> 00:13:47.168
Another big piece is schedule management.

00:13:47.969 --> 00:13:49.672
And this has two, two, two,

00:13:50.307 --> 00:13:52.009
Two levers, okay?

00:13:52.408 --> 00:13:54.831
The first lever is we have to make

00:13:54.871 --> 00:13:57.375
sure we are scheduling as such so that

00:13:57.414 --> 00:13:59.517
we are maximizing productivity.

00:14:00.878 --> 00:14:02.639
We're big believers in PT,

00:14:02.720 --> 00:14:04.302
PT assistant teams.

00:14:04.741 --> 00:14:06.323
We find that that works,

00:14:06.403 --> 00:14:08.586
especially if the PTs are at a level

00:14:08.907 --> 00:14:11.288
that they can truly manage the care of

00:14:11.308 --> 00:14:12.029
their patients.

00:14:12.490 --> 00:14:14.591
while the PT assistant is carrying out

00:14:14.890 --> 00:14:15.691
some of that care.

00:14:16.211 --> 00:14:17.610
We've designed the plan,

00:14:18.030 --> 00:14:20.351
me as the PT have done the evaluation,

00:14:20.812 --> 00:14:21.231
et cetera,

00:14:21.272 --> 00:14:23.413
and we're checking in every so often.

00:14:24.873 --> 00:14:27.113
But making that schedule in a way to

00:14:27.312 --> 00:14:30.153
maximize productivity and the

00:14:30.214 --> 00:14:33.195
communication between therapists and front

00:14:33.235 --> 00:14:37.035
desk has to be what we call completely

00:14:37.115 --> 00:14:38.096
patient-centered.

00:14:39.058 --> 00:14:41.399
We will do whatever we can to get

00:14:41.440 --> 00:14:43.841
the patient in and to do what the

00:14:43.880 --> 00:14:46.462
patient needs from us to get them better.

00:14:47.482 --> 00:14:48.884
Many times that's not happening in

00:14:48.923 --> 00:14:49.464
clinics.

00:14:50.284 --> 00:14:51.085
I got to be out of here at

00:14:51.105 --> 00:14:55.427
four o'clock today because that's when my

00:14:55.466 --> 00:14:57.207
whistle goes off that I have to leave.

00:14:57.268 --> 00:15:01.090
And so there's way of incentivizing to

00:15:01.110 --> 00:15:03.431
help therapists and front desk be able to

00:15:03.471 --> 00:15:04.052
do that better.

00:15:05.011 --> 00:15:06.972
So the one side of it is getting

00:15:07.013 --> 00:15:09.234
as many patients scheduled as we possibly

00:15:09.274 --> 00:15:11.033
can in the most productive manner.

00:15:11.674 --> 00:15:12.794
The second side of that,

00:15:13.054 --> 00:15:15.196
which this is where the other side of

00:15:15.216 --> 00:15:15.975
the sword comes in.

00:15:16.277 --> 00:15:17.356
So you have to do that in a

00:15:17.417 --> 00:15:18.376
compliant manner.

00:15:18.937 --> 00:15:21.798
It has to be within compliance standards.

00:15:22.438 --> 00:15:24.580
And while we can sometimes

00:15:25.807 --> 00:15:28.408
Shift into the yellow a little bit.

00:15:28.428 --> 00:15:29.149
We're in green.

00:15:29.188 --> 00:15:30.649
We just touched that yellow.

00:15:31.190 --> 00:15:32.831
You don't ever want to go deep into

00:15:32.850 --> 00:15:34.751
that yellow into into the red because

00:15:34.792 --> 00:15:36.912
acquirers will pick that up immediately.

00:15:37.513 --> 00:15:40.533
And most acquirers will flag that and

00:15:40.673 --> 00:15:41.974
decrease your purchase price.

00:15:43.674 --> 00:15:43.835
You know,

00:15:43.855 --> 00:15:45.076
there are some a little bit more

00:15:45.096 --> 00:15:46.796
aggressive out there that, you know,

00:15:46.816 --> 00:15:48.256
are not quite as aggressive.

00:15:48.917 --> 00:15:50.398
you know, bothered by that,

00:15:51.219 --> 00:15:53.000
we don't want our clients, you know,

00:15:53.020 --> 00:15:55.802
we want our clients to be right in

00:15:56.182 --> 00:15:56.644
that green.

00:15:57.224 --> 00:16:01.268
So that is a very difficult process to

00:16:01.288 --> 00:16:03.769
get full productivity while you're also

00:16:03.809 --> 00:16:06.471
maintaining full compliance.

00:16:06.491 --> 00:16:08.894
That's the other area that we really find.

00:16:08.974 --> 00:16:10.075
I think, you know,

00:16:10.475 --> 00:16:13.018
the third area is attracting and

00:16:13.057 --> 00:16:15.379
retaining, you know, not just staff,

00:16:16.653 --> 00:16:18.215
But we talked about this with Kurt

00:16:18.274 --> 00:16:18.815
Cignetti.

00:16:19.416 --> 00:16:21.859
He wants pressure tested players.

00:16:22.339 --> 00:16:24.000
And so if you don't pressure test them

00:16:24.061 --> 00:16:24.761
in practice,

00:16:25.501 --> 00:16:26.703
so they do the loud music and all

00:16:26.724 --> 00:16:26.844
that.

00:16:27.784 --> 00:16:30.086
He was the coach of Indiana Hoosiers who

00:16:30.106 --> 00:16:31.008
won the national championship.

00:16:31.087 --> 00:16:31.428
Anyway,

00:16:31.928 --> 00:16:33.870
we have to pressure test our therapists

00:16:33.971 --> 00:16:36.214
and our therapists will appreciate it.

00:16:37.788 --> 00:16:39.208
They don't want to be babied.

00:16:39.629 --> 00:16:40.389
They really don't.

00:16:40.429 --> 00:16:42.629
We think we sometimes have to baby them

00:16:42.690 --> 00:16:43.990
because, oh, you know,

00:16:44.910 --> 00:16:46.870
they like their free time and they like

00:16:46.890 --> 00:16:49.211
their balance and they do like all that.

00:16:49.971 --> 00:16:53.493
But they also want to know when they're

00:16:53.533 --> 00:16:55.192
performing well and when they're not

00:16:55.232 --> 00:16:55.933
performing well.

00:16:55.953 --> 00:16:58.094
And if we don't pressure test them when

00:16:58.134 --> 00:16:59.614
we have pressure situations,

00:16:59.634 --> 00:17:00.774
they're going to wilt and they're going to

00:17:00.794 --> 00:17:01.355
want to go home.

00:17:03.197 --> 00:17:05.137
So I think those are three areas that

00:17:05.178 --> 00:17:07.700
we find are very, very key.

00:17:08.400 --> 00:17:09.961
You got stronger,

00:17:10.000 --> 00:17:11.422
more willing physical therapists,

00:17:11.643 --> 00:17:13.743
they're billing the right codes and

00:17:13.864 --> 00:17:16.165
schedule management is at a hundred

00:17:16.205 --> 00:17:19.607
percent communication between front desk

00:17:19.768 --> 00:17:20.648
and therapists.

00:17:20.669 --> 00:17:21.829
Those are big areas.

00:17:22.438 --> 00:17:23.498
You alluded to this before,

00:17:23.538 --> 00:17:26.799
but how damaging is it when the owner

00:17:26.940 --> 00:17:29.121
is still the ringmaster,

00:17:29.361 --> 00:17:30.701
the center of everything?

00:17:30.801 --> 00:17:33.182
They are the star clinician.

00:17:33.222 --> 00:17:34.942
They're the referral magnet.

00:17:34.982 --> 00:17:36.223
They're the problem solver.

00:17:36.723 --> 00:17:38.944
How damaging is that in terms of the

00:17:38.984 --> 00:17:41.006
situation when you find these people?

00:17:41.536 --> 00:17:42.016
Yeah,

00:17:42.496 --> 00:17:44.836
it's more in small practices than it is

00:17:45.037 --> 00:17:46.116
in large practices.

00:17:46.497 --> 00:17:48.317
And there's a reason why large practices

00:17:48.357 --> 00:17:50.278
get higher multiples than small practices.

00:17:50.778 --> 00:17:52.239
So if I can be a small practice,

00:17:52.259 --> 00:17:54.118
but I can make my practice appear more

00:17:54.159 --> 00:17:55.200
like a large practice,

00:17:55.759 --> 00:17:57.079
I am going to get a higher multiple.

00:17:57.119 --> 00:17:58.019
And by doing that,

00:17:58.579 --> 00:18:01.260
you are essentially you would be willing

00:18:01.300 --> 00:18:03.882
to take the thirty day test.

00:18:04.561 --> 00:18:06.064
which is, hey guys,

00:18:06.765 --> 00:18:07.625
I hate to tell you this,

00:18:07.945 --> 00:18:09.548
but I'm leaving tomorrow and tomorrow's a

00:18:09.587 --> 00:18:09.909
Friday.

00:18:09.989 --> 00:18:10.769
I'm leaving tomorrow.

00:18:11.150 --> 00:18:12.372
I'm going to be gone for a month.

00:18:12.913 --> 00:18:13.854
You guys aren't going to be able to

00:18:13.894 --> 00:18:14.515
contact me.

00:18:15.259 --> 00:18:17.039
So you know what to do.

00:18:18.060 --> 00:18:19.402
Do they?

00:18:19.422 --> 00:18:20.502
Do they know what to do?

00:18:20.903 --> 00:18:23.705
And that is passing down, again,

00:18:24.346 --> 00:18:28.229
those policies and procedures and how we

00:18:28.308 --> 00:18:32.112
run our practice and making sure that you

00:18:32.152 --> 00:18:34.994
have those leaders in place that can run

00:18:35.015 --> 00:18:36.915
your practice when you're gone.

00:18:39.440 --> 00:18:41.042
acquirers are very,

00:18:41.083 --> 00:18:43.886
very skeptical when owners wanna leave

00:18:44.709 --> 00:18:46.131
very quickly after a sale.

00:18:47.133 --> 00:18:48.976
And so that's why I say,

00:18:49.076 --> 00:18:52.260
think out probably more like seven to,

00:18:53.321 --> 00:18:56.083
five to seven years before you want to

00:18:56.123 --> 00:18:56.782
be done.

00:18:57.202 --> 00:18:58.222
Meaning I want to be out of my

00:18:58.242 --> 00:18:59.824
clinic, traveling,

00:18:59.884 --> 00:19:02.423
doing something else to start preparing

00:19:02.825 --> 00:19:05.664
because you at least a minimum of three

00:19:05.684 --> 00:19:08.066
years with an acquirer is where you're

00:19:08.086 --> 00:19:10.287
going to get the best deal.

00:19:10.547 --> 00:19:11.767
You get the highest multiple,

00:19:11.807 --> 00:19:12.366
the best deal.

00:19:13.346 --> 00:19:15.028
And where if you have rollover equity,

00:19:15.147 --> 00:19:17.648
you can maximize that utilizing the

00:19:17.689 --> 00:19:20.729
resources of the acquirer and gaining that

00:19:20.950 --> 00:19:22.549
second bite of the apple as they call

00:19:22.589 --> 00:19:22.650
it.

00:19:23.689 --> 00:19:24.989
I like when people change their minds,

00:19:25.048 --> 00:19:25.329
Paul,

00:19:25.349 --> 00:19:26.769
because it's always unique how they got

00:19:26.809 --> 00:19:27.009
there.

00:19:27.069 --> 00:19:29.691
You used to say and question how many

00:19:29.730 --> 00:19:31.230
PTs were actually really true

00:19:31.310 --> 00:19:32.070
entrepreneurs,

00:19:32.551 --> 00:19:34.051
and you've changed your mind.

00:19:34.152 --> 00:19:35.932
What did it change to and why did

00:19:35.952 --> 00:19:37.272
it change?

00:19:37.393 --> 00:19:38.032
Absolutely.

00:19:38.633 --> 00:19:40.614
Way, way back when...

00:19:41.071 --> 00:19:41.311
You know,

00:19:41.791 --> 00:19:43.893
I sold my practice and we grew it

00:19:43.913 --> 00:19:45.093
to twenty one clinics.

00:19:45.192 --> 00:19:46.032
And, you know,

00:19:46.113 --> 00:19:48.794
I was a young entrepreneur and, you know,

00:19:48.894 --> 00:19:50.634
I was different than all the other

00:19:50.673 --> 00:19:52.814
physical therapy owned businesses out

00:19:52.854 --> 00:19:54.174
there because they're just physical

00:19:54.214 --> 00:19:54.674
therapists.

00:19:55.194 --> 00:19:56.394
No, no, no.

00:19:57.275 --> 00:19:59.635
As I started, you know,

00:19:59.935 --> 00:20:02.695
becoming involved with physical therapists

00:20:02.895 --> 00:20:03.817
and their businesses,

00:20:04.277 --> 00:20:08.057
how quickly they were able to embrace

00:20:08.498 --> 00:20:10.117
systems and processes

00:20:10.498 --> 00:20:12.559
to run and manage their business.

00:20:13.460 --> 00:20:15.582
I cannot tell you how many businesses we

00:20:15.642 --> 00:20:18.263
started with one single site.

00:20:19.684 --> 00:20:22.326
We have one in New York, two partners,

00:20:23.167 --> 00:20:24.008
one single site.

00:20:24.368 --> 00:20:25.789
I can remember I went to visit them.

00:20:25.829 --> 00:20:28.192
Their eyes were this wide open when I

00:20:28.231 --> 00:20:30.133
told them about how we grew our business.

00:20:30.192 --> 00:20:33.395
And they today have fifty four clinics.

00:20:34.935 --> 00:20:37.277
in the New York metropolitan area are

00:20:37.317 --> 00:20:38.576
backed by private equity.

00:20:39.757 --> 00:20:40.297
So yeah,

00:20:40.856 --> 00:20:43.657
physical therapists have great acumen.

00:20:44.157 --> 00:20:45.397
And when you think about it,

00:20:45.897 --> 00:20:50.378
when I go to do an evaluation of

00:20:50.898 --> 00:20:53.618
a human, a patient,

00:20:53.739 --> 00:20:55.660
I'm looking at all the things that are

00:20:55.700 --> 00:20:57.019
keeping that human,

00:20:57.059 --> 00:20:59.200
that patient from being able to do the

00:20:59.279 --> 00:21:01.441
things that they want to be able to

00:21:01.480 --> 00:21:01.601
do.

00:21:02.801 --> 00:21:04.443
I can look at a business the very

00:21:04.564 --> 00:21:05.305
same way.

00:21:05.384 --> 00:21:07.267
And I find that physical therapists are

00:21:07.307 --> 00:21:09.148
very strategic when they look at their

00:21:09.189 --> 00:21:09.769
businesses.

00:21:10.369 --> 00:21:12.511
Sometimes they just don't know what are

00:21:12.551 --> 00:21:14.653
the systems and processes that I now can

00:21:14.855 --> 00:21:17.636
use to build this to three, ten, fifteen,

00:21:17.676 --> 00:21:17.998
twenty.

00:21:18.999 --> 00:21:20.539
And when they can see that,

00:21:21.201 --> 00:21:23.663
When they can see that in a map,

00:21:23.722 --> 00:21:25.463
literally how that is done,

00:21:25.544 --> 00:21:27.605
we're going to do two startups and one

00:21:27.645 --> 00:21:29.767
acquisition per year over the next five

00:21:29.807 --> 00:21:30.147
years.

00:21:30.428 --> 00:21:31.429
Here's the criteria.

00:21:31.608 --> 00:21:33.210
When they can see that in a plan,

00:21:33.950 --> 00:21:34.671
the lights go on.

00:21:37.353 --> 00:21:38.012
You're a young guy.

00:21:38.053 --> 00:21:39.034
You're a lot younger than I am.

00:21:39.253 --> 00:21:41.236
You probably don't even remember UHF TV.

00:21:42.175 --> 00:21:42.415
Oh, yeah.

00:21:42.496 --> 00:21:42.997
Ultra high free.

00:21:43.017 --> 00:21:43.196
Yeah.

00:21:43.217 --> 00:21:44.196
I remember, you know,

00:21:44.277 --> 00:21:46.759
Weird Al had that movie, VHF.

00:21:46.838 --> 00:21:47.459
Yeah.

00:21:48.078 --> 00:21:49.460
Remember, you can barely see it,

00:21:49.500 --> 00:21:51.381
but there was people back behind there.

00:21:51.721 --> 00:21:53.342
And then now we have high def.

00:21:53.761 --> 00:21:56.723
I always describe no plan to a clear

00:21:56.763 --> 00:22:00.226
plan is going from UHF to high def,

00:22:00.905 --> 00:22:03.307
driving to California to visit my son and

00:22:03.347 --> 00:22:03.988
daughter-in-law.

00:22:04.288 --> 00:22:05.308
And I'm in New Jersey.

00:22:06.048 --> 00:22:07.130
how do I get there?

00:22:07.309 --> 00:22:08.549
I need the plan.

00:22:08.589 --> 00:22:10.951
So plans are very, very important.

00:22:10.990 --> 00:22:13.792
And that's what I think spikes physical

00:22:13.833 --> 00:22:16.473
therapists to now become entrepreneurs and

00:22:16.534 --> 00:22:17.213
business owners.

00:22:17.674 --> 00:22:19.174
Well, you just mentioned it a second ago,

00:22:19.234 --> 00:22:19.655
your story,

00:22:19.715 --> 00:22:22.237
you grew from three clinics to twenty one,

00:22:22.277 --> 00:22:23.678
which is not a small feat.

00:22:24.218 --> 00:22:25.038
But let me ask you this.

00:22:25.117 --> 00:22:27.439
What did the twenty one clinic version of

00:22:27.519 --> 00:22:30.760
Paul understand that maybe the three

00:22:31.101 --> 00:22:32.882
clinic version of Paul maybe didn't?

00:22:33.001 --> 00:22:33.321
Or, you know,

00:22:33.362 --> 00:22:34.782
what'd you learn between three and twenty

00:22:34.883 --> 00:22:34.962
one?

00:22:35.526 --> 00:22:36.066
Yeah, no,

00:22:36.605 --> 00:22:39.847
how to execute on a plan and how

00:22:39.887 --> 00:22:41.548
to take three owners.

00:22:41.708 --> 00:22:44.909
And we had a consultant by the name

00:22:44.949 --> 00:22:47.730
of Alan Cox, Cox and Associates.

00:22:48.330 --> 00:22:51.432
He spent with us for three years from,

00:22:52.251 --> 00:22:57.494
from to ,

00:22:54.393 --> 00:22:57.634
he came onsite from Florida a week a

00:22:57.673 --> 00:23:00.535
month for three years.

00:23:01.214 --> 00:23:02.816
And I lived in his pocket.

00:23:03.853 --> 00:23:06.375
Just learning exactly how and we developed

00:23:06.454 --> 00:23:06.994
a plan.

00:23:07.394 --> 00:23:09.156
We executed on that plan.

00:23:09.757 --> 00:23:11.678
And that was where I really,

00:23:11.758 --> 00:23:14.279
really learned and where the lights went

00:23:14.359 --> 00:23:16.000
off, which we had three clinics,

00:23:16.040 --> 00:23:16.820
three owners.

00:23:17.741 --> 00:23:19.042
And we were just stuck.

00:23:20.202 --> 00:23:20.564
And I said,

00:23:20.604 --> 00:23:22.884
my goal is to have twenty clinics someday.

00:23:23.545 --> 00:23:24.986
And my partners would look at me and

00:23:25.006 --> 00:23:25.507
say, well,

00:23:25.586 --> 00:23:27.288
who's going to run the clinic that you're

00:23:27.327 --> 00:23:27.567
running?

00:23:28.527 --> 00:23:29.288
Well, I don't know.

00:23:29.607 --> 00:23:31.169
I don't know exactly how that works.

00:23:32.950 --> 00:23:36.393
And I'll never forget in our house with

00:23:36.593 --> 00:23:39.275
the three partners and Alan got up,

00:23:39.295 --> 00:23:40.375
he had the whiteboard.

00:23:40.455 --> 00:23:41.296
I love whiteboard.

00:23:41.395 --> 00:23:42.356
I love whiteboards.

00:23:42.557 --> 00:23:44.818
He's got the whiteboard going and he puts

00:23:44.878 --> 00:23:47.039
up my clinic and he said,

00:23:47.441 --> 00:23:50.021
Paul is going to be replaced by Nancy

00:23:50.522 --> 00:23:51.282
on Monday.

00:23:51.663 --> 00:23:54.325
She is the new director of the Moorestown

00:23:54.365 --> 00:23:54.726
clinic.

00:23:55.705 --> 00:23:56.146
Monday,

00:23:56.227 --> 00:23:58.470
he's going to vacate that clinic and she's

00:23:58.490 --> 00:23:59.592
going to become the new director.

00:24:00.051 --> 00:24:02.035
And I could see my partners like they

00:24:02.055 --> 00:24:05.619
were shaking.

00:24:05.660 --> 00:24:06.260
What about us?

00:24:06.300 --> 00:24:07.082
Wait, what about us?

00:24:08.683 --> 00:24:08.964
Jeff?

00:24:18.942 --> 00:24:19.362
All right, well,

00:24:19.382 --> 00:24:22.003
we all hopefully have an Alan sort of

00:24:22.064 --> 00:24:22.544
in our life,

00:24:22.564 --> 00:24:25.644
somebody who sees something and puts also

00:24:25.805 --> 00:24:29.907
a process to it.

00:24:30.528 --> 00:24:32.449
What do you think helped you think bigger

00:24:32.489 --> 00:24:34.109
with that time with Alan, right?

00:24:34.150 --> 00:24:35.369
He walked in one day and said, hey,

00:24:35.410 --> 00:24:36.691
listen, Paul's out.

00:24:36.730 --> 00:24:38.132
Somebody else is assuming his role on

00:24:38.172 --> 00:24:38.811
Monday morning.

00:24:39.893 --> 00:24:41.073
After that, you know,

00:24:41.113 --> 00:24:43.193
full body sweat wore off, you know,

00:24:43.334 --> 00:24:45.474
what were the things that helped you think

00:24:45.535 --> 00:24:48.017
bigger after that from three to eventually

00:24:48.057 --> 00:24:48.576
twenty one?

00:24:49.045 --> 00:24:50.306
Sure.

00:24:50.346 --> 00:24:51.185
Yeah.

00:24:51.205 --> 00:24:52.286
You know, if you can see it,

00:24:52.365 --> 00:24:52.987
you can do it.

00:24:53.047 --> 00:24:56.367
You know, I think, again,

00:24:56.768 --> 00:24:59.509
it went right back to the plan and

00:24:59.528 --> 00:25:02.371
a plan that included how much money are

00:25:02.391 --> 00:25:03.411
we going to have to borrow?

00:25:04.730 --> 00:25:06.551
What's each one of these new startups

00:25:06.571 --> 00:25:07.333
going to look like?

00:25:07.873 --> 00:25:09.653
What does an acquisition look like?

00:25:10.374 --> 00:25:10.574
And

00:25:11.784 --> 00:25:12.044
you know,

00:25:12.284 --> 00:25:14.724
we're actually bringing a full criteria

00:25:14.904 --> 00:25:16.205
into each acquisition.

00:25:16.586 --> 00:25:18.487
So we'll be able to very quickly say,

00:25:18.646 --> 00:25:20.528
no, this one doesn't fit our criteria.

00:25:21.647 --> 00:25:23.429
So we don't need to spend any more

00:25:23.469 --> 00:25:24.068
time on it.

00:25:24.950 --> 00:25:27.851
So there was a real process, you know,

00:25:27.931 --> 00:25:29.612
that was set in front of us.

00:25:30.471 --> 00:25:36.295
And I always knew that in order to

00:25:36.355 --> 00:25:36.875
grow,

00:25:37.174 --> 00:25:39.715
we could not keep treating patients and

00:25:39.756 --> 00:25:40.916
running clinics.

00:25:42.096 --> 00:25:44.537
And so it was just music to my

00:25:44.738 --> 00:25:47.397
ears when he said I was going to

00:25:47.417 --> 00:25:49.478
be out of my clinic in a month.

00:25:51.159 --> 00:25:53.118
Jeff was going to be the director of

00:25:53.278 --> 00:25:54.098
work hardening.

00:25:54.818 --> 00:25:56.859
And because we had a big work hardening

00:25:57.019 --> 00:25:58.660
workers compensation program,

00:25:59.039 --> 00:26:00.059
he was going to be out of his

00:26:00.079 --> 00:26:01.059
clinic in a month.

00:26:01.540 --> 00:26:03.121
And then within three months,

00:26:03.861 --> 00:26:06.842
Jamie was going to be our director of

00:26:06.922 --> 00:26:08.342
marketing and she was going to be

00:26:08.382 --> 00:26:08.862
marketing.

00:26:09.789 --> 00:26:14.114
And we never had the trust in our

00:26:14.173 --> 00:26:16.155
staff to be able to run the clinics.

00:26:16.195 --> 00:26:18.038
We thought we were the only ones that

00:26:18.057 --> 00:26:21.320
would run clinics until we saw that there

00:26:21.361 --> 00:26:23.583
was a job description for a clinic

00:26:23.603 --> 00:26:24.084
director.

00:26:24.483 --> 00:26:26.086
There was training that we were going to

00:26:26.125 --> 00:26:27.386
do for the clinic director.

00:26:27.446 --> 00:26:28.567
We weren't just going to put them in

00:26:28.587 --> 00:26:29.689
and close our eyes.

00:26:30.910 --> 00:26:32.872
And when all those processes happened,

00:26:33.136 --> 00:26:35.198
took place with the three clinics that we

00:26:35.258 --> 00:26:38.039
had, it was just copy paste, copy paste,

00:26:38.059 --> 00:26:39.279
copy paste, copy paste.

00:26:39.740 --> 00:26:41.060
Once we went to four or five,

00:26:41.121 --> 00:26:44.702
six and late in two thousand ninety six,

00:26:44.782 --> 00:26:47.164
we did a seven clinic acquisition in

00:26:47.244 --> 00:26:49.046
Lancaster.

00:26:49.105 --> 00:26:52.426
And that that really took us from fourteen

00:26:52.467 --> 00:26:53.327
to twenty one.

00:26:53.928 --> 00:26:55.548
And that was when we knew we were

00:26:55.588 --> 00:26:57.069
ready to start looking for a partner.

00:26:58.330 --> 00:26:59.090
I'm going to force you.

00:26:59.111 --> 00:27:00.692
You have to pick one of these firsts.

00:27:01.652 --> 00:27:02.432
So I'll set the stage.

00:27:02.551 --> 00:27:05.593
A PT owner has decided this month they

00:27:05.633 --> 00:27:07.153
want to sell in three to five years.

00:27:07.173 --> 00:27:08.074
So you got them on that good,

00:27:08.714 --> 00:27:09.694
that timeline, right?

00:27:09.734 --> 00:27:11.055
They're doing things ahead of time.

00:27:11.635 --> 00:27:13.415
Give me their first phone call.

00:27:13.935 --> 00:27:15.717
What's their first spreadsheet they need

00:27:15.737 --> 00:27:17.477
to create and what's the first

00:27:17.597 --> 00:27:19.178
uncomfortable truth they need to face?

00:27:19.238 --> 00:27:20.499
Yeah.

00:27:20.578 --> 00:27:22.598
So the first spreadsheet they need to

00:27:23.338 --> 00:27:24.720
create, um,

00:27:25.415 --> 00:27:27.717
really is a spreadsheet that would show

00:27:27.757 --> 00:27:29.137
them a couple of things.

00:27:29.377 --> 00:27:33.921
One is what are their metrics compared to

00:27:34.141 --> 00:27:35.862
the industry standards?

00:27:37.262 --> 00:27:38.423
Where are their metrics?

00:27:39.625 --> 00:27:41.006
Visits per FTE per day,

00:27:41.566 --> 00:27:44.106
visits per new patient, units per visit.

00:27:44.768 --> 00:27:49.810
Where do they stand in the current market?

00:27:51.388 --> 00:27:52.592
Who do they need to call?

00:27:53.354 --> 00:27:54.736
I mean, Jimmy, give them my number.

00:27:55.999 --> 00:27:57.762
What you really need to have though,

00:27:58.163 --> 00:27:58.443
you know,

00:27:58.483 --> 00:28:00.387
seriously is what you need to have is

00:28:01.810 --> 00:28:02.653
an evaluation.

00:28:04.226 --> 00:28:06.746
just like a physical therapist evaluation.

00:28:07.366 --> 00:28:08.727
And in this valuation,

00:28:08.767 --> 00:28:10.686
we would call it an assessment where

00:28:10.727 --> 00:28:13.307
you're assessing the business's readiness

00:28:13.728 --> 00:28:15.188
for a transaction.

00:28:15.807 --> 00:28:17.448
And that's everything from financial,

00:28:17.728 --> 00:28:21.229
to operations, to clinical, to leadership,

00:28:21.628 --> 00:28:24.588
to growth plan, et cetera, et cetera.

00:28:25.089 --> 00:28:27.450
Are you really truly ready for?

00:28:28.329 --> 00:28:31.951
And I think that is the first call

00:28:31.971 --> 00:28:32.691
that they would make.

00:28:32.711 --> 00:28:33.530
What was the last one?

00:28:34.045 --> 00:28:35.968
the first uncomfortable truth they need to

00:28:36.008 --> 00:28:36.990
come to and face.

00:28:37.490 --> 00:28:37.671
Yeah.

00:28:37.971 --> 00:28:39.653
First uncomfortable truth that they will

00:28:39.673 --> 00:28:43.000
have to face is in many cases where

00:28:43.019 --> 00:28:46.265
their perceived value was and their actual

00:28:46.285 --> 00:28:46.665
value.

00:28:48.199 --> 00:28:51.863
Many owners make a small mistake of when

00:28:51.903 --> 00:28:53.683
somebody tells them at a cocktail party

00:28:54.005 --> 00:28:55.605
how you find your EBITDA.

00:28:56.247 --> 00:28:57.548
It's not really that.

00:28:57.708 --> 00:29:00.590
It's taking all of their salaries.

00:29:01.050 --> 00:29:02.172
You know, you got two owners,

00:29:02.192 --> 00:29:04.153
you put all that to the bottom line

00:29:04.173 --> 00:29:05.575
and they're each taking two hundred fifty

00:29:05.595 --> 00:29:06.276
thousand a year.

00:29:06.855 --> 00:29:08.837
And they forget that you have to replace

00:29:08.877 --> 00:29:10.740
that with a replacement salary.

00:29:11.560 --> 00:29:14.242
So that tends to be the biggest truth

00:29:14.363 --> 00:29:17.165
that is what that true value of the

00:29:17.185 --> 00:29:20.848
business is and how far or how close

00:29:20.909 --> 00:29:24.612
they may be to where they are willing

00:29:24.652 --> 00:29:26.834
to, that's enough for me.

00:29:27.174 --> 00:29:28.895
If we can get exit closing,

00:29:29.355 --> 00:29:31.317
why down the road in a couple of

00:29:31.337 --> 00:29:31.679
years?

00:29:32.499 --> 00:29:34.681
um that's enough and we're content and we

00:29:34.701 --> 00:29:37.883
can move that or we're not even close

00:29:37.903 --> 00:29:40.064
i mean we have so much work to

00:29:40.104 --> 00:29:41.664
do to get to a point where we're

00:29:41.704 --> 00:29:44.146
even willing to consider so they've talked

00:29:44.186 --> 00:29:45.647
about selling the business for three

00:29:45.688 --> 00:29:48.930
months but once you have the valuation

00:29:48.970 --> 00:29:51.811
done and the assessment done you're years

00:29:51.852 --> 00:29:53.613
away from getting the value of what you

00:29:53.653 --> 00:29:55.315
really need to get in order to make

00:29:55.355 --> 00:29:55.914
that decision

00:29:57.054 --> 00:29:57.374
All right,

00:29:57.413 --> 00:29:58.795
let's go out of this and go big

00:29:58.855 --> 00:29:59.115
picture.

00:29:59.155 --> 00:29:59.977
I want you to help me read the

00:30:00.017 --> 00:30:00.457
tea leaves.

00:30:00.656 --> 00:30:01.518
Are you bullish,

00:30:02.138 --> 00:30:03.759
bearish on the profession,

00:30:03.840 --> 00:30:04.981
the profession as a whole?

00:30:05.021 --> 00:30:06.682
Like you talk to owners,

00:30:06.702 --> 00:30:08.184
you see under the hood of a lot

00:30:08.224 --> 00:30:08.625
of people.

00:30:08.925 --> 00:30:10.928
I'm not going to ask for any information

00:30:10.988 --> 00:30:11.488
I shouldn't have.

00:30:11.528 --> 00:30:12.690
But overall,

00:30:12.710 --> 00:30:13.951
when this comes to your brain,

00:30:14.431 --> 00:30:16.073
are you optimistic on the profession?

00:30:16.113 --> 00:30:16.733
Where do you sit?

00:30:17.372 --> 00:30:17.531
Yeah,

00:30:17.932 --> 00:30:20.034
I am extremely optimistic on the

00:30:20.074 --> 00:30:23.237
profession for probably two main reasons.

00:30:23.317 --> 00:30:27.039
Number one is there is so much need

00:30:27.861 --> 00:30:29.342
and we don't have, you know,

00:30:29.362 --> 00:30:31.442
there is so much need for physical

00:30:31.482 --> 00:30:31.903
therapy.

00:30:32.124 --> 00:30:34.786
There are way more patients that need care

00:30:35.145 --> 00:30:36.788
that are not getting care and that are

00:30:36.807 --> 00:30:40.049
on waiting lists across the country to get

00:30:40.109 --> 00:30:40.371
care.

00:30:40.750 --> 00:30:43.573
So we have an enormous need for our

00:30:43.613 --> 00:30:44.173
services.

00:30:45.390 --> 00:30:47.730
I think the other reason why I'm very

00:30:47.810 --> 00:30:51.811
bullish on this is that at some point

00:30:51.872 --> 00:30:52.532
in time,

00:30:52.593 --> 00:30:55.334
as we continue to show the value that

00:30:55.374 --> 00:30:57.795
we are providing to patients and we are

00:30:58.595 --> 00:31:01.476
continuing to march to Washington to show

00:31:01.496 --> 00:31:03.136
the value that we are providing to

00:31:03.176 --> 00:31:03.596
patients,

00:31:04.076 --> 00:31:07.458
we are the absolute greatest value in

00:31:07.518 --> 00:31:09.479
healthcare without a doubt.

00:31:10.339 --> 00:31:12.119
And I think the more of that that

00:31:12.180 --> 00:31:13.601
we can push and press,

00:31:14.862 --> 00:31:17.163
the more our reimbursement will start to

00:31:17.222 --> 00:31:19.724
get to a point where being a physical

00:31:19.765 --> 00:31:23.428
therapist is a good career versus

00:31:23.688 --> 00:31:25.308
currently it's,

00:31:27.000 --> 00:31:28.182
it has its challenges.

00:31:28.801 --> 00:31:28.981
You know,

00:31:29.021 --> 00:31:31.883
therapists coming out of school in ten

00:31:31.923 --> 00:31:33.063
years, in ten years,

00:31:33.103 --> 00:31:35.643
they may be only making ten or twenty

00:31:35.663 --> 00:31:37.584
percent more than they made when they were

00:31:37.624 --> 00:31:39.463
out of school unless they start their own

00:31:39.503 --> 00:31:40.025
practice.

00:31:41.525 --> 00:31:42.625
And there's many, you know,

00:31:42.684 --> 00:31:45.346
get rich quick opportunities out there

00:31:45.385 --> 00:31:47.826
with AI and other things in business.

00:31:48.227 --> 00:31:49.886
So many, you know,

00:31:49.926 --> 00:31:52.087
college students are choosing not to go

00:31:52.147 --> 00:31:52.968
into physical therapy.

00:31:53.817 --> 00:31:55.698
So that's going to be a challenge.

00:31:55.718 --> 00:31:58.378
PaulMartinHealthCareAdvisors.com is the

00:31:58.419 --> 00:31:58.798
website.

00:31:58.818 --> 00:31:59.878
That's where you'd send people.

00:31:59.898 --> 00:32:01.440
You've got your own YouTube channel there,

00:32:01.519 --> 00:32:02.019
LinkedIn.

00:32:02.140 --> 00:32:05.642
I see you sharing insights like we talked

00:32:05.662 --> 00:32:07.501
about today and others on LinkedIn as

00:32:07.541 --> 00:32:07.781
well.

00:32:08.082 --> 00:32:08.403
But Paul,

00:32:08.423 --> 00:32:09.403
we have a tradition on the show.

00:32:09.442 --> 00:32:10.963
It is called the parting shot.

00:32:10.983 --> 00:32:14.644
This is the parting shot.

00:32:14.724 --> 00:32:16.766
One last mic drop moment.

00:32:16.806 --> 00:32:17.645
No pressure.

00:32:18.066 --> 00:32:20.166
Just your legacy on the line.

00:32:21.953 --> 00:32:22.575
All right, no pressure.

00:32:22.595 --> 00:32:23.576
I'll set this up for you.

00:32:23.936 --> 00:32:25.679
A PT owner is listening right now.

00:32:26.420 --> 00:32:28.663
They're five years, three years,

00:32:28.702 --> 00:32:30.065
even one year away from selling.

00:32:30.224 --> 00:32:31.767
What do they need to hear from Paul?

00:32:31.886 --> 00:32:32.847
Is it a pep talk?

00:32:32.887 --> 00:32:34.069
Is it a get your stuff together?

00:32:34.289 --> 00:32:35.832
What's the pep talk you give to someone

00:32:35.872 --> 00:32:36.814
if they're a few years out?

00:32:36.854 --> 00:32:37.453
What do you say to them?

00:32:38.844 --> 00:32:40.444
If you are a few years out,

00:32:40.785 --> 00:32:43.546
you need to start today at getting a

00:32:43.605 --> 00:32:46.866
true understanding of what your value is,

00:32:47.707 --> 00:32:50.387
not by a third party appraisal company.

00:32:50.448 --> 00:32:53.409
And what's your value in this current

00:32:53.648 --> 00:32:54.028
market?

00:32:55.390 --> 00:32:59.134
And if that value after I pay taxes

00:32:59.173 --> 00:33:00.674
and after I get the second bite and

00:33:00.694 --> 00:33:01.055
all that,

00:33:02.175 --> 00:33:05.440
where is that compared to what you will

00:33:05.480 --> 00:33:09.864
need in order to move into the next

00:33:09.903 --> 00:33:10.964
part of your life?

00:33:12.006 --> 00:33:16.451
and start building today the plan to get

00:33:16.490 --> 00:33:19.272
from point A to point Z.

00:33:19.894 --> 00:33:21.015
Once you can see it,

00:33:21.455 --> 00:33:22.477
you will believe it.

00:33:23.037 --> 00:33:26.381
And once you can execute on the first

00:33:26.520 --> 00:33:27.382
part of it,

00:33:27.422 --> 00:33:29.844
just get to the next step of the

00:33:29.864 --> 00:33:30.144
plan.

00:33:31.650 --> 00:33:35.532
That's what I would say for all to

00:33:35.593 --> 00:33:39.015
embrace that because you will get to a

00:33:39.055 --> 00:33:41.537
finish line if you start that process

00:33:41.757 --> 00:33:42.198
today.

00:33:42.478 --> 00:33:43.018
Don't wait.

00:33:43.858 --> 00:33:44.839
Paul Martin, appreciate the time.

00:33:44.859 --> 00:33:46.080
Thanks for coming on the show and setting

00:33:46.101 --> 00:33:48.301
everybody straight.

00:33:48.362 --> 00:33:48.962
Thank you, Jimmy.

00:33:50.874 --> 00:33:51.934
That's it for this one,

00:33:52.214 --> 00:33:53.875
but we're just getting warmed up.

00:33:54.356 --> 00:33:56.278
Smash follow, send it to a friend,

00:33:56.478 --> 00:33:58.138
or crank up the next episode.

00:33:58.660 --> 00:33:59.519
Want to go deeper?

00:34:00.020 --> 00:34:04.063
Hit us at pgpinecast.com or find us on

00:34:04.103 --> 00:34:06.644
YouTube and socials at pgpinecast.

00:34:07.066 --> 00:34:09.367
And legally, none of this was advice.

00:34:09.427 --> 00:34:11.168
It's for entertainment purposes only.

00:34:12.849 --> 00:34:13.429
See, Keith?

00:34:13.630 --> 00:34:14.690
We read the script.

00:34:14.990 --> 00:34:15.672
Happy now?