Sell Your Medical Practice
EG Transitions Helps Doctors Sell Their Medical Practices
Selling a medical practice is one of the most significant financial and professional decisions a physician will make.
Whether you're planning for retirement, reducing your workload, or pursuing a new opportunity, a successful medical practice sale requires careful planning, accurate valuation, and a structured approach.
EG Transitions works with independent MD's, DO's, podiatrists, and chiropractors to guide every stage of the process—from confidential practice assessments and practice valuations to buyer identification, negotiations, and closing coordination—helping maximize value while supporting a smooth transition for both the physician and the practice
EG Transitions advisors work with independent physicians to guide every stage of the process.
EG Transitions - Helpful Terms For Sellers
10 Things Every Doctor Should Know Before Selling A Practice
Selling a medical practice involves much more than just finding a buyer. Collaborating with healthcare transition specialists can help you understand the essential terminology, documents, and potential pitfalls. This awareness can help a doctor avoid unnecessary delays, surprises, and lost opportunities in the process.
1. Asset Sale vs. Stock Sale
An asset sale transfers the practice's assets—such as equipment, furniture, goodwill, records, and other agreed-upon assets—but generally does not transfer the corporation or its tax identification number.
A stock sale transfers ownership of the existing corporation or entity itself, including its existing tax ID, assets, liabilities, contracts, and other obligations, all subject to the terms of the transaction. The appropriate structure, based on your medical practice valuation, should be determined with your attorney and tax professional.
2. A Letter of Intent (LOI) Matters
A Letter of Intent outlines the principal business terms that the buyer and seller are considering before the final purchase agreement is prepared. It can address price, structure, included assets, timing, due diligence, financing, contingencies, and other crucial terms.
A well-defined LOI can prevent major misunderstandings later.
3. Due Diligence Is Not Just Paperwork
Once a buyer becomes serious, expect questions. Financial statements, tax returns, leases, payer information, employee details, equipment, licenses, contracts, and other practice records may be reviewed.
Being organized before the process begins can significantly impact how smoothly a transaction proceeds, making it essential to engage practice sale advisory services if needed.
4. Your Asking Price Is Not the Same as Your Final Sale Price
An asking price establishes where negotiations begin, but the final purchase price can be influenced by factors such as the practice's financial performance, assets, market conditions, buyer financing, due diligence findings, transaction structure, and other negotiated terms.
Pricing a practice realistically can help attract serious buyers while avoiding unnecessary time on the market.
5. The Lease Can Make or Break a Transaction
If the practice operates in leased space, the lease deserves special attention early in the process. Buyers may require an assignment of the existing lease, a new lease, landlord approval, or other arrangements.
A practice can have a willing buyer and a willing seller but still encounter issues if the real estate terms cannot be resolved.
6. Don't Forget the Employees
Staff can be one of the most valuable parts of a practice—and one of the most overlooked aspects of a transition.
Buyers will want to understand staffing, compensation, benefits, tenure, responsibilities, and whether key employees are likely to remain after the sale. Sellers should also understand their obligations to employees before closing.
7. Contracts and Payer Relationships Need Attention
Insurance agreements, vendor contracts, equipment leases, software agreements, employment agreements, and other contracts may not automatically transfer to a buyer.
Some require consent, reassignment, termination, or replacement. These issues should be identified early rather than discovered immediately before closing.
8. Confidentiality Is Important
A practice sale involves sensitive information about the doctor, employees, patients, finances, and business operations.
Information should be disclosed appropriately and at the right stage of the transaction. A confidentiality or nondisclosure agreement can help establish expectations before sensitive information is exchanged.
9. Putting an Ad Up Does NOT Mean the Practice Is Sold
Listing a practice for sale is only the beginning.
A successful transaction generally requires identifying and communicating with potential buyers, responding to inquiries, qualifying serious prospects, arranging introductions, negotiating terms, coordinating due diligence, addressing transactional issues, and keeping the deal moving toward closing.
The advertisement gets attention, but the process is what gets the transaction closed.
10. Start Preparing Before You Are Ready to Sell
One of the most common mistakes is waiting until a buyer appears before getting the practice ready.
Review your financials, organize crucial documents, understand your lease, identify contracts, clean up outstanding issues, and consult with your professional advisors before putting the practice on the market.
The better prepared you are, the fewer surprises there are likely to be later.
A Final Thought
Selling a practice is a process, not an event. The goal is not merely to find someone willing to buy—but to guide a qualified buyer through the process and successfully reach a closing.
Before making decisions regarding legal, tax, employment, or corporate matters, consult with the appropriate attorney, accountant, or other qualified professionals.
Have questions? Reach out today!
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