A Step-by-Step Guide to Selling Your Medical Practice with a Broker

1. A Step-by-Step Guide to Selling Your Medical Practice with a Broker Selling a medical practice is a complex and often emotional process. Whether you are retiring, relocating, or transitioning to a new career, ensuring a smooth sale is crucial. A professional medical practice broker can simplify the process, helping you navigate legal, financial, and operational challenges while securing the best deal. This step-by-step guide will walk you through the process of selling your medical practice with the assistance of a broker, while also providing valuable insights for those looking to buy a medical practice. Step 1: Determine Your Goals and Timeline Before starting the selling process, define your objectives. Ask yourself: ● Why am I selling my practice? ● What is my ideal timeline for the sale? ● What financial outcome do I expect? Having clear answers will help both you and your broker develop a strategic approach to the sale. Whether you want a quick transition or a phased handover, defining these factors will streamline the process. Step 2: Choose the Right Medical Practice Broker

2. Selecting an experienced broker is critical for a successful transaction. Look for a broker who specializes in healthcare and has a strong track record in selling medical practices. Key considerations when choosing a broker include: ● Their industry experience and reputation ● Knowledge of healthcare regulations and compliance ● Network of potential buyers ● Transparency in fees and services A skilled broker will help you evaluate your practice, market it effectively, and negotiate the best deal. Step 3: Conduct a Business Valuation Understanding the fair market value of your practice is essential. Your broker will analyze key factors such as: ● Revenue and profitability trends ● Patient demographics and retention rates ● Existing contracts and liabilities ● Equipment and real estate value An accurate valuation ensures you set a competitive and realistic asking price, making your practice more attractive to buyers. Step 4: Prepare Financial and Legal Documents Buyers will want a detailed look into your practice’s financial and legal standing. Work with your broker and financial advisor to compile essential documents, including: ● Tax returns and financial statements for the past 3–5 years ● Profit and loss statements ● Accounts receivable and payable ● Lease agreements and real estate documents ● Employee contracts and benefits details Ensuring all records are well-organized and up to date will make your practice more appealing and reduce delays during due diligence. Step 5: Market Your Practice Confidentially Confidentiality is crucial to prevent disruption among staff and patients. A broker will use strategic marketing techniques, such as:

3. ● Listing your practice on medical brokerage platforms ● Targeting potential buyers in their professional network ● Using non-disclosure agreements (NDAs) to protect sensitive information An experienced broker ensures that only serious, pre-qualified buyers gain access to your practice’s details. Step 6: Screen Potential Buyers and Negotiate Offers Once interested buyers express interest, your broker will screen them to ensure they have the financial and operational capability to take over the practice. During negotiations, your broker will assist with: ● Evaluating offers and counteroffers ● Structuring payment terms (e.g., lump sum vs. installment payments) ● Addressing contingencies such as lease transfers and employee transitions A broker’s negotiation skills are invaluable in securing the best possible deal while protecting your interests. Step 7: Due Diligence and Finalizing the Sale The due diligence phase allows buyers to review financial, legal, and operational details before finalizing the purchase. Your broker will coordinate with accountants and attorneys to facilitate the process. Key aspects include: ● Reviewing all financial statements and contracts ● Ensuring compliance with healthcare regulations ● Confirming transition plans for patients and staff Once all parties agree on the terms, legal contracts will be signed, and the sale will move to closing. Step 8: Transition Planning and Handover A smooth transition is essential to maintaining patient care and business continuity. Your broker will help design a transition plan that includes: ● Notifying staff and patients (when appropriate) ● Assisting with license and credential transfers ● Training the new owner on operations and management Clear communication and proper planning will ensure a successful handover.

4. Final Thoughts Selling a medical practice is a significant milestone that requires careful planning and expert guidance. By working with a reputable medical practice brokerage, you can ensure a seamless and profitable transition. Whether your goal is to retire or pursue new opportunities, a strategic approach will help you achieve the best outcome. If you are considering selling or even looking to buy a medical practice, consulting a professional broker can provide invaluable insights and streamline the process. With the right team by your side, you can navigate this transition with confidence and ease.