Good reasons for a sale

In the past, large practice structures in particular were virtually unsellable or could only be sold to a successor for a small fee. The entry of investors has fundamentally changed this situation.

There are many reasons for selling a practice. A decisive factor for many is to hand over the practice, and thus the employees and patients, to suitable successors. But what can be done if there are no internal successors?

In this case, the only option is to sell to a third party. In many cases, this can be and will be doctors who intend to continue running the practice in line with the previous owners’ vision. However, once the practice has reached a certain size, very few doctors feel able to pay an appropriate purchase price. This is where larger groups can fill the gap.

In many specialist areas, investor-financed groups are already active and consolidating the market. They usually pay a (significantly) more attractive price for the practice than other doctors could and also offer support in many administrative areas. However, the doctors remain fully responsible for patient care.

In addition to the financial aspects, choosing the ‘right’ partner for your life’s work is also crucial. According to legal requirements, selling doctors must generally remain employed at the medical care centre for three years, which must be established no later than the date of sale. Practice owners must plan for this time frame accordingly.

In addition, purchase price components are usually agreed in the purchase agreements that only come into effect after two or more years of cooperation.

Do you have questions regarding M&A or selling your business?

We would be happy to schedule a call to discuss further.

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