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Medical practice Sale-Prep Checklist

Licenses, documents and fixes buyers look for when you sell a medical practice

Know your number

[ ] Recast earnings to SDE (and adjusted EBITDA if above about $1M of earnings)
[ ] Run the medical practice valuation calculator and save the brief
[ ] Estimate after-tax proceeds under asset vs stock sale

Licenses and transfer issues for medical practices

Done	Issue	What to know
[ ]	Corporate practice of medicine (California example)	California law gives corporations no professional rights in medicine (B&P Code 2400), so lay buyers use management-services structures with a physician-owned practice entity.
[ ]	Medicare enrollment	On a change of ownership, the parties must file enrollment updates; CMS may deactivate billing privileges if the new owner does not submit an application within 30 days (42 CFR 424.550).
[ ]	DEA registration	Not transferable without DEA's written consent (21 CFR 1301.52).
[ ]	Patient records	HIPAA permits disclosures for the sale of a practice to another covered entity and related due diligence as health care operations.

Documents buyers will ask for

[ ] 3 years of financials
[ ] Collections by provider and payer
[ ] Payer contracts
[ ] Coding and billing audit results
[ ] Leases and equipment
[ ] Provider employment agreements

Fix what buyers discount

[ ] Owner dependence: document processes, delegate selling and scheduling, cut your hours in the work
[ ] Customer concentration: no single customer above about 15% of revenue
[ ] Recurring revenue: convert one-off customers to agreements or plans
[ ] Clean books: separate personal expenses, reconcile monthly, keep 3 years of tax returns ready

Deal structure notes

Physician buyers often pay over time or buy in gradually; health systems and PE groups pay cash within fair-market-value limits plus employment agreements.

Timeline

Allow extra time for payer enrollment and credentialing in addition to a normal 6-12 month sale process.

Rules vary by state; confirm licensing and transfer requirements with counsel. General information, not legal or tax advice.

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