It’s no wonder that we have plenty of medical practices in the state of California, from family practices to specialties of nearly any medical condition. So let’s have a look at what’s different, and what’s the same about growing and selling a medical practice in California .

For most physicians or those seeking to purchase a medical practice in California , this is a simple thing. But it is important that the buyer apply early to ensure their practice is in compliance before closing. As a seller, you may have to stay working in the practice for a limited time to ensure a smooth transition.

This is all a part of finding a qualified buyer for your Medical Practice in California.

General and family practice are important everywhere, and there may even be tax advantages and student loan repayment options for those who work in certain rural communities. So even if you have a smaller practice in a rural area, don’t despair when it is time to sell. There will likely be buyers who are interested in your practice because of the location.

A certified M&A Advisor can help you discover this, and find the right buyer who is interested in your type of practice no matter where you live.

According to First Research, medical practice growth is expected to continue at nearly 7% over the next five to seven years. There will be changes though. Telemedicine, digital recordkeeping and security, the changing pharmaceutical industry, and more will mean that medical practitioners will have to be even more tech-savvy.

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This is important for qualifying your potential buyer as well. It will also help you sell your practice if you have already adopted much of the needed technology for telemedicine, your EMR and patient communication systems are up to date, and you are using the latest technology in your practice. This shows your buyer that you are on top of current trends, and makes your practice more desirable.

In some other states, escrow is not required and there are other closing differences as well. Even if your buyer has purchased practices or businesses in other states before, the process in California might feel odd or different to them, and even to you. This is where the guidance of your team will be helpful.

Your M&A Advisor will be the cornerstone of that Deal Team, but it will often include an attorney, an accountant, and perhaps other experts as needed.

Also, California has strict requirements for medical practice insurance, and it is a good idea for your buyer to be pre-approved for these coverages. Otherwise, they may struggle to take over your medical practice. This is another important aspect of finding and keeping a qualified buyer and another area where your business broker can help.

But you may face some unique challenges when it comes to selling your medical practice in California.

There will likely be a resurgence of most of these practices as the pandemic eases, but recovery may take time. The most appealing practices for buyers are profitable and running smoothly. Your business valuation may have been impacted by COVID, so you may have to rely on former profitability and future potential to get the price you would like for your practice.

In some cases, waiting to sell until there has been a recovery and things have normalized a bit may be the best answer.

The answer to these questions may seem a bit complicated, and they can be. Clarity starts with performing a business valuation . That way, you will know what your business is worth now, which is the key to making decisions about what to do in the coming year, and if selling your medical practice is the right answer for you.

If you want to know what your practice is worth and what your options are, contact us today for a business valuation . Then we can talk through when might be the right time to sell your medical practice and how to prepare to start the process. Then we’d love to be your Broker and help you through the entire process from finding a qualified buyer to escrow and closing. Reach out to us anytime . We look forward to talking to you about valuing and selling your medical practice in California smoothly and confidentially in California.