Prepare the financial record
Clean monthly financials, clear add-backs, reliable provider data, contract records, and reconciled tax returns make the economics easier to explain. Preparation can also surface issues before a buyer does.
A practice sale needs tax planning before the allocation is fixed.
A physician seller should review deal form, price allocation, timing, working capital, retained liabilities, post-sale compensation, and the use of net proceeds.
Understand deal form and allocation
An asset sale, equity sale, merger, rollover, earnout, or employment arrangement can produce different tax and risk outcomes. The agreement and allocation need coordinated tax and legal review.
Plan the net proceeds
Gross price is not spendable wealth. Estimate taxes, debt payoff, transaction costs, working-capital adjustments, escrow, and timing before committing proceeds to retirement, investment, debt, or lifestyle decisions.
Plan the next professional chapter
Post-sale employment, restrictive covenants, consulting, retained ownership, and departure timing can affect both the economics and the physician’s future options.