Selling a physician-owned practice: 5 factors to consider

The number of physician-owned practices considering a sale has tripled in light of the COVID-19 pandemic, according to information gathered by Physicians First.

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Physicians First’s Eric Yetter shared five factors for prospective sellers to consider:

1. Demand for specialty medical services isn’t going away, and investors are confident these businesses will recover.

2. Transactions vary based on the practice’s circumstances and the purchaser’s needs and wants.

3. Physicians First believes investors will adjust financial performance and valuation calculations in ways that account for COVID-19-related shutdowns.

4. Negotiations and contract agreements will be complicated by disruption to key operational measures and transaction elements.

5. A practice’s post-shutdown recovery will be factored into valuations.

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