PART 1 OF 4

Preparing the Practice for Sale

The groundwork that determines what your practice is worth.

For most physicians, selling a practice is the culmination of a career's work — and the outcome is shaped long before a buyer appears. A practice that is well-organized, compliant, and financially transparent commands a stronger price and a smoother closing. This post outlines the preparation that positions a California medical practice for a successful sale.

Get the financials in order

Buyers and their advisors will scrutinize the numbers. Assemble clean financial statements, tax returns, and production and collection reports for at least the past three years. Normalize the figures to reflect the practice's true earning power — separating out one-time expenses and owner-specific perks — so a buyer can see what the practice actually generates.

Address compliance before diligence

Problems are far cheaper to fix before a buyer finds them. Review the practice's regulatory posture in advance:

• HIPAA policies, risk assessments, and business associate agreements.

• Billing and coding practices, and any history of audits or overpayments.

• Licensure, DEA registration, and payer enrollment status.

• Employment and independent contractor classifications for providers and staff.

Organize the corporate house

Confirm that the practice's corporate records, ownership structure, and professional corporation status are current and compliant with California's rules for medical practice ownership. Gaps in corporate housekeeping can stall a deal or reduce a buyer's confidence.

Understand your value drivers

Goodwill, patient base, payer mix, provider relationships, and location all contribute to value. Knowing which of these carry your practice — and which may concern a buyer — lets you address weaknesses early and negotiate from a position of understanding.

How West Coast Health Law Can Help

We help physician sellers prepare a practice for market — tightening financials, resolving compliance gaps, and organizing corporate records so the practice presents at its strongest.

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Laws change and every transaction is different; consult a qualified attorney about your specific situation.

West Coast Health Law offers a FREE consultation which you may schedule by clicking the button on our website.