1. Start 1–3 years before you want out
The best sale outcomes come from planning ahead. A practice with growing collections, a stable hygiene program, low owner-dependence, and clean books sells faster and for more. Even a single year of cleanup before listing can raise your sale price meaningfully.
2. Understand how your practice is valued
Buyers and lenders value practices primarily on cash flow — SDE (Seller's Discretionary Earnings): your net income plus your salary, perks, and one-time expenses added back. As a rule of thumb, general practices sell for about 60–85% of annual collections, but cash flow and trend drive the real number.
A professional valuation establishes a defensible asking price and is the foundation of the marketing package.
3. Prepare your financials and documents
You'll need three years of tax returns and P&Ls, a year-to-date P&L, a production/collections report by provider, an accounts-receivable aging report, a fee schedule, an equipment list, and your lease. Organized documents speed up buyer due diligence and bank underwriting.
4. Market the practice confidentially
Confidentiality is critical — if staff or patients learn of a sale prematurely, value can erode. A good broker markets your practice anonymously (region and specialty only) to a vetted buyer pool, and releases your identity only after buyers sign an NDA.
Listing on an aggregated marketplace multiplies exposure to qualified, financeable buyers nationwide rather than just your local network.
5. Evaluate offers and negotiate
Compare offers on more than price: financing certainty, transition expectations, and timing matter. Most sales are structured as asset sales for tax and liability reasons. Your CPA can model the after-tax proceeds of each structure.
6. Due diligence, lease, and close
The buyer verifies your numbers, the bank underwrites, and the landlord consents to assign the lease. A short transition period — where you introduce the buyer to patients and staff — protects the goodwill you're being paid for and is often tied to the final payment.