Sell My Medical Practice

Selling your medical practice is one of the most significant financial decisions you'll ever make. Whether you're approaching retirement, burned out from two decades of insurance battles, or simply ready for the next chapter—this guide walks you through what actually happens when you sell.

No fluff. No sales pitch. Just the process, step by step.

Step 1: Know Your Number

Before you talk to a single buyer, you need to understand what your practice is worth. Not what you hope it's worth. Not what your colleague sold for five years ago. What the market will actually pay today.

Valuation comes down to three things:

• Your EBITDA Earnings before interest, taxes, depreciation, and amortization. This is your true cash flow.
• Your specialty Dermatology commands higher multiples than primary care. That's the market.
• Your risk profile How dependent is the practice on you? What's your payer mix? Are revenues stable or declining?

Step 2: Understand Your Buyer Options

Not all buyers are the same. Who you sell to affects your price, your post-sale life, and your legacy.

Private Equity / MSO Platforms

Best for: Highest multiples, "second bite" opportunity through rollover equity
Trade-off: You'll keep working 3-5 years under an employment agreement
Typical multiple: 5-10x+ depending on specialty

Individual Physician Buyer

Best for: Clean exit, relationship continuity for patients
Trade-off: Limited buyer pool, financing-dependent, lower multiples
Typical multiple: 2-5x

Hospital or Health System

Best for: Referral relationships, job security for staff
Trade-off: Bureaucracy, slower process, sometimes lower valuations
Typical multiple: 3-6x

Internal Partner or Associate

Best for: Culture preservation, mentorship continuity
Trade-off: Often requires seller financing, may not maximize price
Typical multiple: Negotiated—often below market

Step 3: Prepare Your Practice for Sale

Buyers don't pay top dollar for a mess. They pay for clean financials, solid operations, and low risk. Here's what to focus on 12-24 months before you sell:

• Clean your books. Get 3 years of tax returns, P&Ls, and balance sheets organized. Reconcile everything.
• Document your add-backs. That boat you run through the practice? Fine—but document it. Buyers will normalize EBITDA.
• Reduce key-man risk. If 90% of revenue walks out the door with you, your multiple drops. Develop other providers.
• Lock in your lease. A lease expiring in 6 months is a red flag. Get 3-5 years of runway.
• Update your equipment. Deferred maintenance gets deducted from price.

Step 4: Run a Process (Don't Negotiate Alone)

The single biggest mistake sellers make? Talking to one buyer and negotiating in a vacuum.

Buyers know you're emotionally invested. They know you're busy. They know you've never done this before. That's leverage—for them.

Running a competitive process means:

1. Having multiple buyers at the table simultaneously
2. Creating urgency and deadline pressure
3. Benchmarking offers against each other
4. Walking away from bad terms because you have alternatives

You don't need to hire a broker (though many sellers do). But you do need to approach this like a negotiation, not a conversation.

Step 5: Understand the Timeline

Selling a medical practice isn't a 30-day flip. Here's what to expect:

Total timeline: 6-12 months from decision to close. Plan accordingly.

Common Mistakes to Avoid

• Waiting until you're burned out. Exhausted sellers leave money on the table. Start planning 2-3 years before you want out.
• Overestimating your add-backs. That aggressive EBITDA adjustment? Buyers will discount it—or walk.
• Ignoring your team. Staff turnover during a sale spooks buyers. Keep your people informed and engaged.
• Signing a bad LOI. Letters of intent feel non-binding, but they set the terms. Don't agree to exclusivity without competitive tension.
• Underestimating due diligence. QofE, legal review, compliance audits—this phase eats time. Block it on your calendar.

What Happens After You Sell

Depends on your buyer:

• PE/MSO: Expect a 3-5 year employment agreement. You'll keep seeing patients, but under new management.
• Individual physician: Clean break possible—or a transition period as you introduce the new owner to patients.
• Hospital system: You become an employee with all that entails—meetings, compliance, bureaucracy.

There's no universally "best" path. It depends on what you want your life to look like.

Next Steps

Continue your research:

• How Practice Valuation Works: Deep dive into EBITDA, multiples, and value drivers
• Selling to Private Equity: How PE deals work and what to expect
• Confidential Valuation Calculator: Know your number in 60 seconds