What to Expect When Selling Your Medical Practice

A Step-by-Step Guide for Physicians Planning Their Exit

For many physicians, selling a medical practice is a once-in-a-lifetime event. It’s not just a financial transaction—it’s a personal and professional transition that impacts your staff, your patients, and your legacy.

If you’re beginning to explore this path, you probably have questions. What is the process like? How long does it take? What should you be doing now—even if you’re a few years away from retiring?

At Strategic Medical Brokers, we’ve helped countless physicians navigate this process. Here’s a realistic look at what you can expect when it’s time to sell your practice.

📍 Phase 1: Pre-Sale Preparation

Timeline: 3–24 Months Before Sale

This is often the most overlooked—but most important—part of the entire process.

Key Activities:
– Practice Valuation: Understand your fair market value, including goodwill
– Financial Clean-Up: Eliminate personal expenses, tighten AR, and stabilize earnings
– Organize Documentation: Prepare financials, tax returns, lease agreements, and staff contracts
– Confidential Strategy Session: Align on your goals—timing, ideal buyer profile, and transition needs

💡 Tip: Download our Transition Checklist to ensure you’re fully prepared. 📥

🕵️ Phase 2: Confidential Marketing & Buyer Outreach

Timeline: 2–6 Months

Once your practice is market-ready, your broker will begin confidential outreach to qualified buyers. This is done discreetly to avoid unnecessary disruption.

What Happens:
– Creation of a blind profile to protect your identity
– Buyer screening and NDA execution
– Distribution of your Confidential Information Memorandum (CIM)
– Initial buyer-seller meetings (optional, private)

💬 Phase 3: Letter of Intent & Due Diligence

Timeline: 1–3 Months

Once a buyer is serious, they’ll submit a Letter of Intent (LOI). This non-binding agreement outlines key deal terms before deeper due diligence begins.

Due Diligence Includes:
– Review of financials and operations
– Buyer interviews with key staff (often post-offer)
– Legal and tax review
– Negotiation of final deal structure and payment terms

⚠️ Confidentiality remains critical during this phase to protect staff and patient trust.

🖋️ Phase 4: Purchase Agreement & Closing

Timeline: 30–60 Days

If everything aligns, your attorney and broker will help finalize the Definitive Purchase Agreement (APA) and closing documents.

What to Expect:
– Final walkthrough of liabilities, representations, and warranties
– Closing day: signatures, payment transfer, and formal transition
– Post-closing responsibilities such as patient transition letters and staff onboarding (if agreed upon)

🔄 Phase 5: Transition Period

Timeline: 30–180 Days (varies by agreement)

Most sales involve a short-term transition where the seller remains available to ensure continuity.

Common Scenarios:
– Part-time consulting
– Limited patient handoff
– Gradual reduction in presence to reassure patients and staff

✅ Summary: What You Can Expect

Summary: What You Can Expect

📥 Next Step: Get the Exit Timeline Infographic

Whether you’re 1 year or 10 years away from retirement, it pays to start early.

▶ Download our 3-Year Exit Planning Timeline Infographic 📥

▶ Schedule a Confidential Discovery Call

Let’s help you exit on your terms—with the legacy and value you’ve earned.