How to Sell a Medical Practice or Urgent Care in California | Martin Navarro, Business Broker
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Medical and Professional · Seller's Guide

How to Sell a Medical Practice or Urgent Care

Medical practices and urgent-care clinics sell on patient volume, payor mix, and compliance. Here is what a sale involves.

What makes selling a medical practice different

A medical practice's value rests on patient volume, payor mix, and provider coverage, active patients, the balance of commercial insurance versus Medicare and Medi-Cal, and whether providers stay after the sale. Urgent care adds visit volume, hours, and ancillary services like imaging and labs.

Compliance and the corporate-practice-of-medicine rules are central. Billing compliance, credentialing, and HIPAA are diligence-heavy, and in California who may own a medical practice is restricted, so buyer eligibility and deal structure, often a management-services (MSO) arrangement, must be handled correctly with counsel.

What is a medical practice worth?

Most buyers value a medical practice on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.

Medical practices and urgent-care clinics are typically valued on a multiple of adjusted earnings, with patient volume, payor mix, provider retention, and ancillary revenue driving the number; larger groups draw private-equity and platform buyers. This is a specialized, compliance-heavy area, and I coordinate with your healthcare attorney and CPA so the structure and valuation are correct.

A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →

Selling without your staff or competitors finding out

Selling a medical practice works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.

What's your medical practice actually worth?

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Selling a medical practice, answered

California restricts the corporate practice of medicine, so ownership and structure matter. Deals are often structured through a management services organization (MSO) or to a licensed buyer. I work with your healthcare attorney so the transaction is structured lawfully.

A lot. A healthy share of commercial insurance versus government payors, and diversified, well-documented volume, supports a stronger valuation. We present your payor mix and volume clearly for buyers and lenders.

Yes. We market with a blind profile and NDAs, and protected health information is handled in a HIPAA-compliant way, protecting patients, providers, and staff throughout.

Martin Navarro, Business Broker

Martin Navarro, Business Broker

Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.

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