08/08/2025
“Rick, when should a private practice owner start thinking about selling their practice?”
It’s a great question and one I get asked often.
Most owners don’t start thinking about selling until 3–4 years before they want out. But in reality, you should start preparing the day you open your doors.
Why? Because whether it’s 10, 20, or 30 years down the road, your end goal is likely to sell the practice and use that value to help fund your retirement. That means having the right systems, files, and documentation in place from day one:
▪️ Insurance contracts - Save original contracts and any amendments over the years, whether digitally or in a physical folder.
▪️ Policies & procedures - Keep these updated and accessible.
▪️ Employee records - Job titles, job descriptions, and complete files for all team members.
▪️ Payer information - Understand how you're reimbursed (per CPT code, per visit, etc.).
▪️ Accounting awareness - Many small practices use cash-based accounting, but most buyers (specially larger therapy chains) will convert to accrual-based accounting. Be prepared for that transition.
Also remember: If you're planning to retire in 3–4 years, you'll likely need to sell even sooner. Many buyers want the current owner to stay on for a few years post-sale. That affects your EBITDA and ultimately the purchase price.
So yes.. start planning on day one. Keep your operations clean and organized, track your metrics (visits, evals, payer mix, etc.), and you’ll be in a much better position when it’s time to exit.
Need help getting your practice ready to sell?
Reach out to me at rick@gawendaseminars.com
