When it comes to exploring a medical business for sale, pricing and costs can help you determine the factors that affect the sale price. The first thing to consider is the type of medical business for sale. A fitness center might list its business as a health care practice sale and cost less than a doctor practice sale that includes a client base.

Other factors that affect the pricing and costs include the amount of time the practice has conducted business and whether or not staff will stay on after the transition. When it comes to location, not only can the state affect the price, but the town and the location in the town can add to the cost; you pay more for a prime location. When you evaluate your options, you might want to consider the following things:

1. Determine whether or not the medical practice sale is part of a franchise.

2. Evaluate the cash flow of the practice and consider the client retention you can realistically expect if the main doctors leave after the sale.

3. Consider working with a healthcare practice broker who can help you understand all the factors involved in a medical business sale.

Action Steps
The best contacts and resources to help you get it done

Find a chiropractic business sale

A chiropractic business sale will usually transfer any office equipment to the new owner. In some cases, the previous owner will also transfer his or her client list to the new owner as well. The cost of a chiropractic business will depend upon the location of the office, the number of clients served by the office and other factors like the type and condition of equipment included in the sale.

I recommend: BusinessBroker.net provides information on chiropractic businesses for sale. It lists businesses from as low as $16,000 to over $1,000,000. MergerNetwork is an online database that includes chiropractic businesses for sale with prices between $20,000 to over $1,000,000. It offers information on the gross income of the practice, the number of clients, the type of equipment involved and other issues that affect the price.

Consider a family practice when you look for a medical business for sale

When you look at a physician practice sale, you may want to consider a family practice, which can have more clients than a pediatric practice. The pricing and cost will depend on the equipment, the client base, the location and any real estate involved in the transaction. In some cases, you may want to consider buying a franchise rather than a private practice, but keep in mind you'll have to continue to pay franchise costs as long as you own the franchise.

I recommend: ProMed Financial provides pricing and costs for medical businesses for sale and includes information on family medical practices ranging from $370,000 $795,000. Its descriptions include the location, the client base, the equipment and information on whether the building is included or leased. PracticeWorld.com offers information on family medical businesses for sale. It lists some prices, starting at $299,000, but for most of the prices and costs, you'll need to call the contact person provided with the listing.

Find a dental business sale to start your career as a dentist

Like other kinds of medical businesses for sale, you can find a variety of factors affecting the price and costs of dental practices. Franchise opportunities are more common for dental practices than for some of the other types of medical practices, so you may want to consider a franchise as an option.

I recommend: AFTCO is a dental practice transition consulting firm that provides information on dental practices for sale. Its search engine allows you to find dental business sales by location, but you'll have to contact the company in order to get information on price. The American Dental Association (ADA) provides information you need to consider when you look at a dental business sale. McLerran & Associates further explains factors that can affect the price and cost of buying a dental practice.

Individuals who wish to get involved in the healthcare industry and be on either end of a medical business sale will need to make several decisions, including the preferred location and how much capital to spend. You should also find out how much competition you will have nearby. Although every city benefits from having multiple medical businesses, if your office is too close to a major healthcare provider that might overshadow your practice.

For those who are ready to sell, healthcare practice facilities can be listed online. Post your company on a website that will allow you to display all the pertinent details for the business opportunity you are offering.

Buying any medical business for sale will take a lot of time, money and effort. You must be certain the business opportunity you are interested in is right for you. There are many things to consider before you make the investment, such as:


1. The costs involved, such as purchasing fees, marketing expenses, royalties and inventory;

2. Whether the establishment you are interested in is recognized and respected by the local community;

3. How many employees will need to be hired and trained;

4. Will you utilize the services of a healthcare practice broker or make the purchase directly?

Action Steps
The best contacts and resources to help you get it done

Purchase a franchised medical business for sale

Check into a franchise when you are looking for a doctor practice for sale, dental business for sale or any other medical related business. Buying a franchise offers several benefits over opening a new health care practice. An established medical chain has a well known name and brand, a business plan that has been tested and the ability to offer ongoing support from the franchisor. The company that established the franchise will have done all the ground work to get the business started, so you won't have to.

I recommend: Homewell Senior Care provides health care services for the elderly. Medical Staffing Consultants helps start medical staffing businesses. Investigate Shamrock Dental for dental business sales. When looking to buy a chiropractic business for sale, try HealthSource Chiropractic and Progressive Rehab.

Hire a healthcare practice broker when you are ready to purchase a medical business

A medical business broker specializes in hooking up buyers and sellers for dental business sales, podiatric business sales and the purchase of any healthcare related company. They are dedicated to assisting you throughout the entire process, and will work for you to make sure you get the best deal possible. Look to them for guidance, financial consulting and business valuation services. They can also help you with due diligence procedures, and any other details that must be taken care of while you are in the process of taking over a business.

I recommend: Receive help and advice from from MedicalBusinessBroker.com or Medical Business Broker.

Discover where to make a health care practice sale

Current medical business owners might decide it is time to sell their operations. Whether you are interested in selling your business so that you can retire, move or change your vocation, when the time comes to initiate a transaction you can list the details about your company online. There are websites that will act as a medical business brokerage and help you to find a buyer for your establishment.

I recommend: Sell health care practice establishments on the Medical Business Exchange or Health Financial Advisors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check with the Better Business Bureau for detailed information about the medical business for sale you are interested in purchasing.
• •  Find out if medical franchises are regulated by your state government, and, if so, in what ways.
• •  Hire a certified public accountant to investigate the financial history of any health care practice you are considering, explain the expenses that are involved and help you understand your long-term earning potential.
• •  Consider working with a franchise lawyer who will assist you with the purchase.

Whether you are contemplating a medical doctor, dental, chiropractic or veterinary practice sale, there are key legal issues to consider. Laws and regulations govern everything from sale preparation to the sale valuation or appraisal, and even tax ramifications.

It is important to have the proper resources when dealing with medical business sales. You may choose to outsource this knowledge through a healthcare practice broker, or become self-taught. At the very least, you will need an overall understanding of the various laws and regulations governing medical practice sales. Consider the following ways to arm yourself with more information about medical business sale transactions:

1. Read about the IRS 1031 law and how it can help save on the capital gains front.

2. Learn from experts in the industry — hire a healthcare practice broker who specializes in handling a medical business for sale.

3. Consider educating yourself on the laws and regulations you are likely to encounter when selling a medical practice.

Action Steps
The best contacts and resources to help you get it done

Understand the impact of Section 1031 on a medical business for sale

Under Section 1031, if a property is traded or exchanged for a similar type of property, there is a capital gains deferral and the taxpayer is subject to depreciation recapture taxes. Section 1031 offers a physician or veterinary practice sale some options worth considering.

I recommend: A Medical Practice Brokers' article discusses how IRS section 1031 tax deferred real estate exchanges rulings affect a health care practice sale. The Physician's News Digest site also contains an analysis of 1031 and how physicians can defer capital gains taxation when a practice is sold.

Hire a company that specializes in preparing a medical business for sale

Companies that specialize in leading a medical practice through the process of a sale are experts in understanding laws and regulations for these transactions. Consider interviewing two or three medical practice brokers to make sure you are comfortable with their knowledge of rules and regulations before settling on one.

I recommend: Professional Practice Sales has been in the business of medical business sale brokering since 1966. Transition Consultants has been a health care practice broker for more than 25 years.

Purchase materials or browse web sites for legal background when selling a medical business

Consider becoming self-educated about laws and regulations you are likely to face when selling a medical practice. Having a greater understanding will help you ask educated questions if dealing with brokers.

I recommend: The Texas Medical Association sells a book entitled "Transitions: Legal Considerations in Selling or Closing a Medical Practice". Greenbranch Publishing specializes in medical practice books as well as The Journal of Medical Practice Management and its spin-off books.