How to Sell a Medical Practice: A Step-by-Step Guide

Selling a medical practice isn’t something most physicians do every day. For many, it’s a once-in-a-lifetime decision—one that marks the end of a long and meaningful chapter. Whether you’re retiring, joining a larger group, or moving into a different role entirely, selling your practice is a major milestone that requires careful planning, smart strategy, and the right support.

If you’re a doctor thinking about putting your medical practice on the market, this guide is for you. We’ll walk through everything you need to know to sell your practice smoothly—from preparing your finances to finding the right buyer and finalizing the deal.

Step 1: Define Your Goals

Before you dive into paperwork and valuations, take a step back and ask: Why are you selling? The answer will shape every decision moving forward.

Common reasons include:

• Retirement
• Burnout
• Merging with or selling to a hospital or group practice
• Relocating to another city or state

Be honest about your goals. Do you want to exit completely and retire, or stick around for a transition period? Would you prefer to sell to a younger doctor who can continue your legacy or to a larger healthcare organization?

Knowing your “why” will help you choose the right path and partners in the process.

Step 2: Get Your Financials in Order

Think of your practice like a house you’re about to sell—no one will make an offer until they’ve had a close look inside.

Start gathering:

• Profit and loss statements for the past 3 years
• Balance sheets
• Tax returns
• Accounts receivable and aging reports
• Equipment and asset inventory
• Lease agreements or property ownership documents

If your financials are messy or outdated, this is the time to clean them up. Consider bringing in an accountant who specializes in medical practices. They’ll help you present a clearer, more attractive picture to potential buyers.

Step 3: Determine the Value of Your Practice

Valuing a medical practice is part art, part science. The final sale price will depend on many factors, including:

• Revenue and profitability
• Type of specialty
• Location
• Patient panel (size, demographics, payer mix)
• Staff and provider structure
• Growth potential

There are three main ways to value a practice:

1. Asset-Based Valuation – Based on the value of tangible and intangible assets.
2. Market-Based Valuation – Looks at what similar practices have sold for.
3. Income-Based Valuation – Focuses on future cash flow and profitability.

You’ll likely want a professional valuation done by a healthcare consultant or broker. Not only does this give you a realistic starting point, but it also provides a neutral assessment that buyers will trust.

Step 4: Get Legal and Compliance Documents in Order

Selling a medical practice isn’t just a financial transaction—it’s a highly regulated one. Before listing your practice, make sure your legal house is in order:

• Check that all licenses and certifications are current.
• Review employment contracts and associate agreements.
• Identify any pending litigation or compliance issues (like HIPAA violations).
• Determine ownership of intellectual property or trademarks.

If you lease your space, find out whether the lease can be transferred or if the buyer will need to sign a new one. If you own the property, decide whether to include it in the sale or lease it separately.

Bringing in a healthcare attorney early can help you avoid deal-breaking surprises later.

Step 5: Find the Right Buyer

Finding the right buyer is about more than price. You’re selling a business built on trust—patients, staff, and community relationships. You want someone who will uphold that legacy.

Potential buyers might include:

• Another physician (independent or group)
• A hospital or health system
• Private equity or management groups
• Federally Qualified Health Centers (FQHCs) or nonprofits

You can market your practice through:

• Healthcare business brokers
• Professional networks
• Medical associations
• Industry-specific platforms like BizBuySell or Doctors Broker

Make sure you vet buyers thoroughly. Ask about their experience, their goals for the practice, and their ability to finance the purchase. You don’t want to waste time with someone who can’t follow through.

Step 6: Negotiate the Deal

Once you’ve identified a qualified buyer, it’s time to negotiate the terms. This will likely include:

• Sale price
• Payment structure (lump sum, installments, earn-out)
• Transition period (how long you’ll stay involved post-sale)
• Employee and staff retention
• Asset vs. stock sale (each has different tax implications)

A few tips:

• Be realistic. Overpricing your practice can scare off buyers.
• Stay open-minded. Flexibility can help close a deal faster.
• Rely on your advisors. Your accountant, attorney, and broker can all help you navigate the finer points.

Expect some back and forth—it’s normal. The goal is to land on terms that benefit both you and the buyer.

Step 7: Manage the Transition

The sale isn’t done when the contract is signed. In fact, one of the most delicate parts comes after: the transition.

Here’s how to make it smooth:

• Communicate with your staff early. They’ll have questions—be honest, clear, and supportive.
• Introduce the buyer to key patients, vendors, and referral sources.
• Stay involved during the transition period if agreed upon. You might work for a few months to help hand off operations and maintain continuity.
• Celebrate the change. Let your patients know they’re in good hands.

Don’t ghost your practice the day the ink dries. A thoughtful exit protects your reputation and sets the buyer up for success.

Final Thoughts: Selling a Practice is Both Business and Personal

You’ve spent years—maybe decades—building your practice. Selling it isn’t just about numbers; it’s about people, purpose, and legacy. While the process can feel daunting, approaching it step-by-step and surrounding yourself with the right advisors makes all the difference.

So, whether you’re ready to retire to the beach, jump into a new venture, or just take a well-earned breather, selling your practice can be a powerful next step.

Take your time. Do it right. And walk away proud of what you’ve built—and what comes next.