Many physicians, dentists, therapists and other practice owners wonder whether they need a business broker to sell their practice, or whether they can handle it themselves. You are not required to use a broker. But selling a medical practice involves confidentiality, valuation, buyer screening, negotiation, due diligence and regulatory steps, all while you continue caring for patients. For most owners, professional help makes the difference between a smooth transition and a stressful one.
Healthcare business broker Dahlia Black explains what a broker does in a medical practice sale, when owners benefit most and the questions to ask before you hire one.
What a Business Broker Does in a Practice Sale
- Values the practice realistically. A broker looks at adjusted earnings, payer mix, patient base, provider dependence, staff, equipment and location to set a price buyers will support.
- Protects confidentiality. Staff, patients and referral sources usually should not hear about a sale early. Brokers market practices without revealing their identity and share details only after buyers sign confidentiality agreements.
- Finds and screens buyers. Buyers may include other physicians, group practices, private investors or strategic acquirers. A broker qualifies their experience, financing and fit before you spend time with them.
- Negotiates terms. Price is only part of the deal. Structure, transition period, employment or consulting terms, real estate and non-compete provisions all matter.
- Manages due diligence and closing. The broker keeps the process on schedule and coordinates with your attorney and accountant.
When Selling on Your Own Can Work
Some practice sales happen without a broker, often when an associate or partner already working in the practice is the buyer and both sides agree on value. Even then, owners usually still need an independent valuation and experienced legal and tax advisors.
When a Broker Adds the Most Value
- You do not already have a buyer lined up.
- You want to reach more than one buyer to get a fair price.
- Confidentiality is critical for your staff and patients.
- Your practice depends heavily on you as the provider and needs a thoughtful transition plan.
- You own the real estate and want to decide whether to sell it or lease it.
- You want to keep practicing and seeing patients while the sale is handled.
Questions to Ask Before Hiring a Broker
- Do you have experience selling healthcare businesses and medical practices specifically?
- How do you value a practice, and what will you need from me?
- How do you protect confidentiality during marketing?
- How do you find and qualify buyers, and do you have an existing buyer network?
- How do you handle licensing, payer and regulatory considerations with buyers?
- What does the timeline usually look like for a practice like mine?
- How are you paid, and what does the engagement agreement include?
- Who will I work with day to day?
A broker who understands healthcare should be comfortable discussing payer contracts, credentialing, provider transitions and compliance, not just price.
What to Prepare Before You Talk to a Broker
- Three years of financial statements and tax returns
- A breakdown of revenue by payer and service
- Patient volume and provider productivity
- A list of staff, roles and compensation
- Equipment list and any leases
- Real estate lease or property details
- Payer contracts and any recent audits
Explore Your Options Confidentially
At Truforte Business Group, we help owners of medical practices and other healthcare businesses throughout Florida understand their value and options, whether they plan to sell this year or several years from now. Read our case study on selling a medical practice, see how practice sales work for physical therapy and chiropractic practices, or start with our business valuation calculator.
About the Author
Dahlia Black is a healthcare business broker and licensed real estate associate with Truforte Business Group and the owner of Senior Care Advisory Group. With 25 years in senior care, including hands-on experience managing and developing assisted living facilities, she helps Florida owners of assisted living facilities, home health agencies, medical practices and other healthcare businesses value, prepare and confidentially sell their businesses. Call 239-284-1317 to speak with Dahlia.