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Sell Your Medical Practice

If you are looking to sell your medical practice then Medical Business Brokers specialises in the sale and divestment of businesses and practices across Australia. We can guide you through how to sell medical practices and value your practice with accurate medical practice multiples that we have from evidence of prior comparable sales. We have performed medical practice sales across a range of disciplines since 2014.

Our acquisition team are licensed and registered business brokers and Registered Business Valuers (RBV) and members of the Australian Institute of Business Brokers (AIBB)

Medical Practice Multiples

In the market place, medical practices sell for prescribed multiples of adjusted EBITDA or profit. The medical practice multiples paid can vary widely from business to business. There is not one set medical practice multiple for all sales unlike in some other industry categories.

Factors that can affect a multiple include

  • location – city or rural
  • reliance on owner
  • number of clinical billing staff
  • lease
  • exposure
  • assets / plant and equipment
  • licences or accreditation
  • private or public funded income streams

This is just short synopsis of what can affect a medical practice multiple and as part of our process we use a comparative approach to assess your business across a whole range of factors and comparisons to similar practices that have sold.

How To Sell A Medical Practices

Preparation is key, in order to sell a medical practice, you need your business to be in the best condition to present to prospective buyers, their accountants and financial institutions. The ability to produce up to date audited financial accounts. Generate statistical reports from your management software. Payroll Reports. Provide details of staffing and employment conditions. Show revenue through bank statements or financial reports from financial management software. Be able to produce a lease for your premises or if you own them then an independent market rental appraisal from an agent. Good clear photographs or the practice including assets.

The above points are just the beginning in the preparation cycle for bringing a practice to the market.

 

When looking to purchase a business, many important aspects need to be considered from both the purchaser and vendor perspective. Most vendors look to keep the marketing of their business confidential so as not to attract unwanted attention to their brand and unsettle their staff or patient base. This is one of the main reasons why vendors will engage a business broker to look after the marketing and sale of the business.

Medical Practice Sales

We specialise in practice sales in the valuation range of $150,000 to $4M. We find that smaller sites or solo practitioners fall into the lower end of the price market while practices with large numbers of practitioners, little reliance on owners or multiple locations tend to go toward the higher end. Practices in the main cities likewise are always easier to sell the rural and remote sites purely because the buyer pool is larger.

Confidentiality is key when we sell a medical practice and we work hard to ensure that your patients, clients and staff do not recognise that your business is for sale which might cause destabilisation.

We use the latest in data room technology to house your commercial information. Buyers can only access this under secure log in with confidentiality agreements and pre screening. The data room does not allow downloads, screenshots, printing, copying or emailing of any information. This ensures that your commercial details remain where they can be controlled and not able to be sent to 3rd parties.

Do you want to sell a medical practice? Please read below for some more specifics about our services.

 

USEFUL LINKS
” i have purchased 2 practices through Medical Business Brokers, one in Adelaide and the other in Melbourne. Very professional, provided all detailed information that was needed and met the requirements of our lender”
Dr JM - Adelaide

Practice Buyer

WHY USE US?

We are licensed and registered business agents and practice valuers. With a clear methodology, years of medical practice multiples to derive accurate values and long history of successful sales for our clients. While there are many reasons why a business owner should use a broker for the sale of their business, there are two key reasons that are critical.

Medical Premises for Sale

Medical Premises for Sale

Status: FOR SALE

Droylsden House, Located at 143-145 Baillie Street, Horsham Victoria, is a historic building, providing Medical and allied health services for people in Horsham and around. The Consulting suites are well maintained with 12 ... read more

Medical Space For Sale – Caringbah – NSW

Medical Space For Sale – Caringbah – NSW

Status: FOR SALE

Ray White Commercial is pleased to exclusively offer for sale/lease this brand new medical premises with suites ranging from 70m2* or entire premises which is spread over two levels and occupying approximately ... read more

Medical Centre Investment For Sale Eastern Melbourne

Medical Centre Investment For Sale Eastern Melbourne

Status: FOR SALE

Dominant Freestanding 2 level metropolitan super medical centre with 15 + year triple net lease to 2049+ 15 year triple net lease to Thompsons Road Clinic to 2034 plus options to 2049 + A dominant freestanding 2 level metropolitan ... read more

Caringbah – Urban Medical Facility For Sale

Caringbah – Urban Medical Facility For Sale

Status: FOR SALE

This unique opportunity for medical facility perfectly located on the heart of Caringbah and only 250m from both Sutherland Public Hospital and Kareena Private Hospital, the property is offered with 11 car park and private Lift. Architectural ... read more

Medical Premises For Sale Greenacre Sydney

Medical Premises For Sale Greenacre Sydney

Status: FOR SALE

Medical Consulting Rooms / Office space with upstairs residence With prime exposure on the corner of Waterloo Road and Northcote Road in Greenacre, this extremely rare and unique opportunity is perfect not only for medical practitioners but ... read more

Medical Premises For Sale – Bayswater – Melbourne

Medical Premises For Sale – Bayswater – Melbourne

Status: FOR SALE

MEDICAL CENTRE FOR SALE– ATTENTION OWNER OCCUPIERS, AND/OR INVESTORS   CBRE Australian Healthcare & Social Infrastructure are pleased to offer for sale 1/664 Mountain Highway, Bayswater – An established Day Hospital and Specialist ... read more

Family Medical Centre For Sale – Brisbane Northern Suburbs

Family Medical Centre For Sale – Brisbane Northern Suburbs

Status: SOLD SOLD SOLD

Brisbane - Medical Practice Going Concern For Sale SOLD SOLD SOLD SOLD Located in the Northern Suburbs of Brisbane is this stable and profitable medical centre. Key Points Experienced FRACGP team 6 x FRACGP working 4.7 FTE Accredited Mixed ... read more

2 x Established Sydney Medical Centres – Register Interest / Coming To Market Soon

2 x Established Sydney Medical Centres – Register Interest / Coming To Market Soon

Status: COMING SOON - REGISTER INTEREST

2 x Well Established Medical Centres - Selling as a Single Collective COMING SOON - REGISTER YOUR INTEREST NOW  Located in Greater Western Sydney these 2 long established and highly profitable medical centres will sell together as the one ... read more

Sell a medical practice

Focus

It can take many months to sell a business, sometimes up to or more than 12 months, depending on the location, practice performance, economic uncertainty or willingness of banks to finance purchasers. Business owners who get caught up in the sale process, marketing and engagement of purchasers can take their eyes off the business, this can often lead to a downturn in productivity which unfairly might reflect in the profits and hence valuation of the practice.  When a practice is listed for sale, everything should be in place to see that it is performing at its peak so as to impress prospective purchasers. The business owner should be more engaged that ever in increasing profits and revenue so as to increase their chances of sale.

Selling Your Medical Practice Agreement

Confidentiality

This is paramount to any business owner selling a practice. Engaging a broker can ensure that the listing and management of the sale of your practice remains confidential. It’s important that your local competition, the public and most importantly your key staff are not aware of or distracted by a listing or sales process in most cases. The loss of patients or key staff who might seek alternative sites of treatment or employment if concerned about a practice for sale can damage a business very quickly and hence the prospects for sale if the business is on the market for some time and sees falling revenues and staff turnover.  Below are some key points about the sale process and what Medical Business Brokers can offer.

 

The Process of selling your Medical Business

Listing of Business

When engaging us at Medical Business Brokers to list your practice for sale, you will be asked to execute and enter into a Sales Listing Agreement, this is mandatory under the Business Agents Act. This agreement will have a stipulated agreed timeframe as well as defining the agreed prospective sales price, marketing strategy and sales completion costs and commissions. It is stipulated by law, that a Registered Brokerage Agency cannot list a business for sale until such time as a contract between both parties has been executed. As the vendor, you will be provided with a copy of Sale Listing Agreement. At the time of listing, our firm will charge a Listing Fee that covers our labour and costs for our internal listing processes and arrangements. A marketing strategy will also be discussed and agreed upon.  The Listing Fee, is refunded to the Vendor at the time of sale. 

Business Preparation

Upon execution of the Sales Listing Agreement, our firm will work closely with you to collate all necessary documentation of both financial and informative nature to be used in the listing and sales process of your medical business. We will cover off preparation for due diligence, marketing strategy, prospective purchase entities as well as our internal processes of collating and preparing information memorandums and financial / business reports for prospective purchasers.

Identifying The Purchasing Entity

During the course of a business listing, our team seeks out and vets all prospective buyers.  All prospective purchasers are asked to execute a Confidentiality Agreement prior to the disclosure or dissemination of any information regarding the practice for sale. Our firm also asks for financial credentials from the prospective purchasers where possible to ensure that they have the finance or approved finance to complete a sale transaction. Only after these two points have been determined is the business for sale “opened up” for the prospective purchaser to view. Our firm will keep in close contact with you, the seller, throughout this process.

Due Diligence

We have extensive experience in due diligence operations and can provide advice to the vendor regarding preparation for the due diligence exercise. The due diligence process is the most important part of the transaction for both the purchaser and seller. It is imperative that the seller has their business in order from a financial and commercial documentation standpoint in order for the sale process to proceed smoothly and without delay. We can provide checklists of commonly requested documentation for the vendor to prepare in advance. A poorly presented business at the due diligence stage is a leading factor in prospective purchasers withdrawing from sale completion. For larger commercial transactions, it is not uncommon that either side may with to engage a lawyer and / or an accountant during this process.

Completion / Settlement

Upon completion of due diligence, a Sale Agreement is executed and exchanged between both parties and financial settlement occurs. For larger commercial transactions it is not uncommon for the vendor to engage a lawyer with commercial transaction experience to draft an SPA (Sale / Purchase Agreement). This document not only covers the financial details of settlement but often extends to cover Warranties for both the Vendor and Purchaser as well as other items such a trade restraints, brand restraints and a detailed list of assets and intellectual property that is included in the sale.