Medical Practice Broker

You've decided to sell your medical practice. Now the question: do you need a broker? And if so, how do you pick the right one?

This guide walks through the broker landscape—what they do, what they cost, and when they're worth the fee. Spoiler: it depends on your practice size and your time availability.

What Does a Medical Practice Broker Actually Do?

A broker is your representative in the sale process. Here's the scope of work:

Valuation & Pricing

• Analyze your financials to determine market value
• Advise on realistic pricing expectations
• Position your practice to maximize perceived value

Marketing & Buyer Sourcing

• Create confidential marketing materials (teaser, CIM)
• Access their buyer network—often the most valuable asset
• Conduct confidential outreach to qualified buyers
• Screen buyers for seriousness and financial capability

Process Management

• Coordinate NDAs and information sharing
• Facilitate management presentations and site visits
• Track multiple buyers simultaneously
• Maintain deal momentum and timeline pressure

Negotiation Support

• Present and negotiate offers on your behalf
• Serve as buffer between you and buyer (emotional distance matters)
• Push back on price and terms without damaging relationships
• Guide you through LOI and definitive agreement negotiation

Broker vs. M&A Advisor: What's the Difference?

These terms are often used interchangeably, but there are real distinctions:

The bottom line: If you're selling a $500K revenue primary care practice to an individual physician, a traditional broker works fine. If you're selling a $3M dermatology practice to private equity, you want an M&A advisor who speaks that language.

When You Probably Need a Broker

• You don't have time. Running a practice is a full-time job. Managing a sale process on top of that? Something will suffer.
• You don't know buyers. If you don't have a buyer in mind, you need someone with a network.
• You're emotionally attached. Negotiations are easier when there's an intermediary. Buyers push harder when dealing directly with the seller.
• This is your first (and likely only) sale. Experience matters. Brokers do this repeatedly. You're doing it once.

When You Might Skip the Broker

• You already have a buyer. An interested associate, competitor, or system has approached you. You may just need an M&A attorney to paper the deal.
• Your practice is very small. Under $300K in revenue? The broker fee may not be justified. Consider a flat-fee consulting engagement instead.
• You have M&A experience. Some physician owners have business backgrounds. If you know how to run a process, you can save the fee.
• Private equity is already calling. Many PE firms do direct outreach. If you're already in discussions with platforms, you may not need sourcing help—though an advisor can still help with negotiation.

How to Choose the Right Broker

Not all brokers are equal. Here's what to evaluate:

1. Healthcare Focus

General business brokers sell restaurants, dry cleaners, and occasionally medical practices. You want someone who specializes in healthcare. They'll understand:

• Payer mix implications
• Regulatory compliance requirements (STARK, AKS)
• The PE/MSO buyer landscape
• Employment agreement structures post-sale

2. Specialty Experience

Does the broker have experience in your specialty? Dermatology transactions differ from primary care. Ophthalmology has ASC considerations. Specialty knowledge matters.

3. Track Record

Ask for:

• Number of transactions closed in the last 2 years
• Average deal size
• References from past clients (and call them)
• Examples of buyers they've worked with

4. Fee Structure Transparency

Understand exactly what you're paying:

• Success fee percentage (and what it applies to—just cash? Equity?)
• Any upfront retainer or monthly fees
• Minimum fee amounts
• What happens if deal falls through—any "tail" period?

5. Chemistry

You'll be working closely with this person for 6-12 months. Personality matters. Trust your gut.

Typical Broker Fee Structures

Pro tip: Negotiate. Especially for larger practices. Many brokers will flex on fee if you're an attractive engagement.

Red Flags to Watch For

• Inflated valuation promises. If someone quotes a price 30% above everyone else, they're either buying your engagement or don't understand the market.
• No healthcare focus. "We sell all kinds of businesses" is not a selling point. It's a warning sign.
• Pressure to sign immediately. Reputable brokers are confident. They don't need high-pressure tactics.
• Long exclusivity periods. 6-12 months is typical. 24 months with harsh termination clauses? Walk away.
• No references available. If they can't produce happy past clients, why?

Questions to Ask Potential Brokers

1. How many medical practice transactions have you closed in the past 24 months?
2. What specialties do you focus on?
3. Who are the likely buyers for my practice—individuals, systems, or PE?
4. How do you source buyers? Do you have an existing network?
5. What's your valuation estimate for my practice, and how did you arrive at it?
6. What's your fee structure? Any minimums or retainers?
7. How long is the exclusivity period? What are the termination provisions?
8. Can you provide references from physicians who've sold through you?
9. What happens if the deal falls apart after LOI? After diligence?
10. How will you keep me informed throughout the process?

Alternatives to Traditional Brokers

M&A Attorneys Only

If you have a buyer, you may only need legal representation to negotiate terms and paper the deal. Hourly fees instead of success-based fees.

Consulting Engagements

Some advisors offer flat-fee consulting—helping you prepare materials and strategize without running the full process. Good for sophisticated sellers.

Direct-to-PE

Many private equity platforms do their own sourcing. You can approach them directly. Risk: you lose negotiating leverage without competition.

Next Steps

Continue your research:

• How to Sell a Medical Practice: Complete guide to the sale process
• Medical Practice Valuation: How buyers calculate what they'll pay
• Selling to Private Equity: Understanding PE transactions
• Sell My Medical Practice: Step-by-step walkthrough for sellers