Selling your practice: How to sell your practice successfully

Why early planning is crucial when selling a practice

If you want to sell your practice, you should know: This is not a short-term project. Experience shows: The earlier you start planning, the more room for maneuver you have. A lead time of 1-2 years can be useful in order to compile all the necessary documents, optimize processes and find the right successor.  

Sufficient lead time is particularly advantageous for individual practices or rare specialties. Individual advice is highly recommended to ensure a successful sale of your practice.

Practice valuation: Determining the right sales price

Do you know how much your practice is worth? Determining the value of your practice is the central starting point for a successful transfer to a successor or buyer. A professional practice valuation not only takes into account key business figures such as turnover, profit or equipment inventory, but also “soft factors” such as:

• Patient loyalty
• Employee structure
• Location attractiveness
• Billing data
• Future prospects of the specialty

Avoid your own estimates or simple lump sums! A realistic and comprehensible value of the practice is the basis for successful negotiations with interested parties and prevents misjudgements. It is essential to rely on expert support here.

How to find the right practice successor

Whether you want to hand over your practice to an MVZ, a colleague or a young professional – the search for a suitable successor is often more complex than expected. A lack of interested parties, regional particularities or unclear prospects can delay the process.

With a clear requirements profile and the right approach – e.g. via specialist networks, chambers or specialized M&A consultants such as Conpair – you significantly increase the chances of a successful succession plan.

Good preparation for company succession makes all the difference:

• Define what is important to you (e.g. continuation in your interests, taking over the team).
• Prepare your practice organizationally and emotionally for the change.
• Get professional support – we will be happy to help you!

Selling a practice to an MVZ: criteria and possible advantages

The sale to a medical care center (MVZ) is generally subject to the agreement of continued employment as a doctor for at least 3 years. Your practice should also meet certain criteria:

• a stable, at best increasing turnover in the last 3 years
• at least 2 KV seats
• the option of selling the practice in accordance with the applicable licensing conditions

Selling a practice to an investor medical center is a good option if you are planning to retire from management but wish to continue practicing medicine. In addition, in many cases a higher purchase price can be achieved, as a license is granted without a tender and selection process.

For example, an MVZ can be founded by investors following a prior investment in hospital holding companies. Through these, access to the acquisition of practices of registered panel doctors is possible.

Such an investor MVZ has the option of applying for its own license to provide SHI-accredited medical care and subsequently employing doctors. As a doctor in private practice, you have the option of transferring your license to practice as a panel doctor to the MVZ by waiving your license to practice as a panel doctor.

What happens to the practice staff and patient files?

Responsibility towards the practice staff is a crucial aspect when selling a medical practice. The same applies to patient files. This makes careful transition planning all the more important.

What happens to existing employment relationships? According to Section 613a of the German Civil Code (BGB), employment contracts continue to exist when the practice is sold, meaning that the employed doctors and other staff are also taken over. If you as the employer do not have a special right of termination, an objection is possible.

Handing over patient records to the new practice owner would be contrary to medical confidentiality. The explicit consent of your patients is required for this.

Incidentally, patients and the team are generally only informed about the transfer once the sale has been completed. In exceptional cases, it may make sense to involve employees in advance – however, this is done individually and in close consultation.

Please also read our blog post on this topic: Selling a company: informing employees and customers correctly.

Tips for a successful practice handover

The actual handover is much more than just signing the purchase contract. It includes, among other things

• the orderly handover of patient files and IT systems,
• providing information to the team and patients,
• the joint transition period and
• communication with cooperation partners, referring physicians, laboratories, etc.

A structured handover plan creates security for all parties involved and is a key success factor. Do not underestimate the importance of choosing the right time to sell. It is crucial to define your personal and professional goals and analyze your financial situation.