PVR

Corporate & M&A

Selling an independent medical practice

Selling an independent practice takes 6–18 months from decision to close. Three main paths: MSO / PE-backed platform (highest multiple, most complexity), internal succession to associate/partner (cleanest, often lower price), or asset sale to another local group (fastest, moderate price). Independent valuation before you start negotiating is the single highest-value $15k you'll spend.

By Jordan Alderman, MBA, CMPE · Reviewed by Rania Hassan, JD, CHC · Last reviewed · Methodology

Disclosure: Independent editorial. No pay-for-placement, no affiliate rankings. Full editorial standards.

This guide covers the paths and pitfalls of selling an independent practice.

The three main paths

  • MSO / PE-backed platform: 5x–10x EBITDA depending on specialty, roll equity, 3-5 year employment commit
  • Internal succession (partner/associate): 2x–4x EBITDA, financed over 5-7 years, cleanest continuity
  • Asset sale to another group: 3x–5x EBITDA, faster close (60-90 days), fewer strings

Preparing to sell (12+ months before)

  • 3 years clean, audited (or reviewed) financials
  • Provider comp normalized to market
  • Payer contracts reviewed for assignability
  • Real estate decision (sell separately or include)
  • Compliance file clean (HIPAA, OSHA, licenses)
  • Key staff retention plan (bonuses tied to transaction)

Independent valuation before negotiating

$8k–$25k engagement with a valuator you (not the buyer) select. Result gives you defensible EBITDA, normalization adjustments, and a range. This is the single most impactful pre-sale spend.

Common pitfalls

  • Signing LOI without independent valuation
  • Underestimating post-close employment obligations
  • Missing non-transferable payer contract clauses
  • Not modeling rolled equity risk in MSO deals
  • No key-person retention plan for critical staff

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