Sell Your Solo Practice 3 to 5 Years Before Retirement. Here's Why!

Volume 12, Issue 15, July 29, 2025

By: Kevin Maahs, CM&AA

For solo practice owners, whether you're a primary care physician, dentist, optometrist, dermatologist, or veterinarian, timing is everything when it comes to selling your practice. One of the most common mistakes doctors make is waiting until they're ready to retire before considering a sale. Unfortunately, by the time most doctors are emotionally and mentally ready to exit, they're often not prepared for the reality that to receive maximum value for their practice, they will still need to continue working for several years after the sale.

When private equity firms and strategic buyers acquire a practice, they are not just purchasing a patient list or a few exam rooms. They are acquiring a stream of recurring revenue. To pay a strong multiple on earnings, a buyer needs to feel confident that the business will at least maintain its current cash flow or preferably continue growing. That confidence disappears the moment a buyer learns the solo doctor plans to retire shortly after the sale. Without a solid transition plan, the buyer's biggest fear usually becomes reality: patients leave with their doctor.

Patients often have strong emotional connections with their healthcare providers. When a solo doctor leaves, especially after decades of building trust and rapport, most patients will follow. This is especially true in primary care, optometry, dermatology, and veterinary care, where the relationship is highly personal and longstanding. If a buyer sees that the doctor is stepping away immediately, they will anticipate significant patient attrition and lower their offer, sometimes drastically. In these cases, the deal might be reduced to a simple asset or goodwill acquisition, capturing only a fraction of the practice's true value.

There are exceptions, of course. Dental practices tend to experience less patient churn post-transition, largely because patients often build long-term relationships with hygienists, not just the dentist. However, even in dentistry, buyers usually prefer the seller to remain for one to two years after the sale to introduce the new dentist(s), maintain production levels, and support continuity of care. That transition period, even in more resilient specialties, still plays a major role in deal success and valuation.

Timing Is Key When Selling a Medical Practice Solo

When is the best time for solo doctors to sell their medical practice? Selling three to five years before you plan to retire allows buyers time to bring in a replacement provider(s) who can be slowly integrated into the practice. This transition phase enables patients to get to know the new doctor while the original doctor is still present, which significantly improves patient retention. A gradual handoff allows the buyer to feel more confident about maintaining revenue, and therefore they are more willing to pay a premium for the business.

From a deal structure standpoint, most transactions are not 100% cash at closing. Sellers typically receive around 60% to 70% of the total purchase price upfront, with the remainder paid through an earnout or in the form of equity rolled into the new entity. Additionally, the seller usually stays on post-close as an employee for several years, receiving a market-rate salary. These terms can vary significantly based on specialty, geography, deal size, and negotiation leverage.

All of these point to the importance of working with a knowledgeable mergers and acquisitions advisory firm.

The Value of a Healthcare M&A Advisor

An experienced healthcare M&A advisor can help you position your practice to maximize value, run a competitive sales process to attract multiple buyers, and negotiate favorable deal terms. The advisor can also offer invaluable guidance on what is considered standard, favorable, or non-favorable in today's market. Beyond the financials, an advisor serves as a critical sounding board, helping remove emotion from what is often one of the biggest and most personal financial transactions of a doctor's life.

Unfortunately, not a week goes by without my M&A advisory firm, VERTESS, having a difficult conversation with a doctor who waited too long. These are seasoned professionals who are ready to retire and assume their years of dedication will command top dollar, only to be met with the reality that their practice, with no plan for transition, has lost significant value. At that point, they're often left with two options: continue working for a few more years to maintain value or accept a low offer that reflects only the value of their equipment and charts.

The reality is that most solo doctors don't think about the sale of their practice early enough. It's not something that typically crosses their minds until retirement is just around the corner, but by then, the leverage is gone. The good news is that with proper planning and the right team, doctors can time their exit to maximize both financial return and personal peace of mind.

If you're within five years of retirement, now is the time to start exploring your options. Preparing early gives you more flexibility, stronger negotiating power, and a significantly better shot at walking away with the value you deserve for the business you spent your career building.

At VERTESS, we specialize in helping physicians sell their medical practices with strategy and confidence. Whether you are exploring your options or ready to take the next step, our team is here to help you protect your legacy and maximize value. Start the conversation today. Your future deserves a plan.

Kevin Maahs, CM&AA

As a seasoned entrepreneur with 12 years of experience owning and operating a durable medical equipment company specializing in urological and power mobility, I have developed a deep understanding of the industry and the complexities of running a successful business. In 2021, I achieved a significant milestone by successfully selling my business, a process facilitated by the expertise and guidance of Vertess.

Navigating the sale of a company can be one of the most challenging and emotional journeys for any business owner. However, with Vertess’ unwavering dedication, meticulous attention to detail, and seamless process, my experience transitioned from stressful to highly rewarding. This transformative experience ignited my passion for helping other entrepreneurs achieve their goals and maximize the value of their businesses.

Today, I am excited to leverage my firsthand experience and insights to support business owners in navigating the complexities of selling their companies, helping them turn what can be a daunting process into a fulfilling and successful endeavor.

We can help you with more information on this and related topics. Contact us today!

Email Kevin Maahs or Call: (949) 467-0802