Selling your Portland neurology practice is a significant decision. The market is active, but a successful sale requires more than just finding a buyer. It demands a well-planned exit strategy that protects your legacy and maximizes your financial return. This guide will walk you through the current market, key steps in the process, and how to understand what your practice is truly worth.
Market Overview
The timing for considering a sale is strong. The global neurology market is projected to grow by nearly 7% annually through 2029, driven by an aging population and increasing demand for specialized care. Here in Portland, this translates into a competitive landscape where hospitals, large medical groups, and private equity-backed platforms are actively seeking established neurology practices. While the national neurologist shortage presents a challenge, it also makes well-run, efficiently staffed practices even more valuable. Buyers are looking for stability and growth potential, and the Portland market offers both.
Key Considerations
Beyond the market a few critical factors require your attention from the very beginning. How you handle them can significantly impact your sale’s outcome.
Maintaining Confidentiality
Your first concern is likely privacy. A breach of confidentiality can disrupt your staff, worry patients, and weaken your negotiating position. A formal process ensures that any potential buyer is vetted and signs a strict non-disclosure agreement before they ever see sensitive information about your practice.
Identifying the Right Buyer
The best buyer isn’t always the one with the highest offer. It could be a local hospital, a regional health system, a national PE-backed neurology platform, or another neurologist looking to expand. The right partner depends on your goals for legacy, staff security, and your own future role, if any. A broad, targeted search is key.
Navigating Compliance
Healthcare is a field defined by regulation. Ensuring your practice is fully compliant with HIPAA and all other state and federal rules is not just good practice. It is a requirement for any serious buyer. Proactively addressing any potential issues is a critical step in preparing for a sale.
Market Activity
The demand for quality neurology practices is driving significant market activity. We see practices with annual revenues from under a million dollars to over $6 million being successfully acquired. For example, recent transactions in the space (though not specific to Portland) included a practice with $3.4M in revenue and another with $2.8M in revenue generating $2.1M in cash flow. The key to achieving these premium outcomes is not just having strong financials. It is running a competitive process that generates multiple offers from different types of buyers. This creates leverage and allows you to negotiate the best possible price and terms.
The Sale Process
Many owners think they should only start preparing when they are 100% ready to sell. I find the opposite is true. The best time to start planning is 2-3 years before you want to exit. Buyers pay for proven performance, not future potential. A structured process turns that preparation into a successful transaction. It generally follows four key stages.
- Preparation and Valuation. This is the foundation. We work with you to analyze your financials, normalize your earnings, and establish a clear, defensible valuation. This is also when we prepare your marketing materials.
- Confidential Marketing. We take your practice to a curated list of qualified buyers. This is done without revealing your identity, protecting your confidentiality while generating serious interest.
- Buyer Vetting and Negotiation. As interest builds, we manage negotiations with multiple parties to drive up the price and improve the terms of the deal.
- Due Diligence and Closing. Once you select the best offer, the buyer conducts a thorough review of your practice. We manage this process to prevent delays and ensure a smooth path to the closing table.
Understanding Your Practice’s Value
One of the most common things I hear from owners is “I don’t think my practice is worth enough to sell.” This is often because they are looking at their tax returns. Sophisticated buyers, however, look at value differently. The key metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your financials by adding back owner-specific perks and one-time expenses to show the true cash flow available to a new owner. This number is then multiplied by a factor based on your scale, growth, and provider mix. A multi-provider practice might fetch a 5.5x to 7.5x multiple, while a smaller practice might be in the 3x to 5x range. An expert valuation can often uncover significant value you didn’t know was there.
Planning for What Comes Next
The deal you sign at closing determines your future. A well-structured transaction goes beyond the sale price to address your personal and financial goals for the years ahead. It’s not just about selling. It’s about how you sell. This includes planning for everything from your tax liabilities to your personal involvement after the sale.
| Consideration | What It Means for You |
|---|---|
| Your Legacy & Staff | The right deal structure can include provisions to protect your staff, maintain your practice’s name, and ensure continuity of care for your patients. |
| Tax Structure | How the sale is structured has massive implications for your after-tax proceeds. Proper planning can significantly reduce your tax burden. |
| Your Future Role | A sale doesn’t always mean walking away. Options like an equity rollover (keeping a stake in the new company) or a defined transition period can keep you involved and provide a second financial windfall down the road. |
Frequently Asked Questions
What is the current market outlook for selling a neurology practice in Portland, OR?
The market is strong and growing, with the global neurology market projected to grow nearly 7% annually through 2029. Portland’s competitive landscape includes buyers like hospitals, large medical groups, and PE-backed platforms actively seeking established practices, making it a favorable time to sell.
How important is confidentiality when selling my neurology practice?
Maintaining confidentiality is critical. A breach can disrupt your staff, worry patients, and weaken your negotiating position. Implementing a formal process where potential buyers are vetted and sign strict non-disclosure agreements before accessing sensitive information is essential.
Who are the typical buyers for a neurology practice in Portland?
Buyers vary and include local hospitals, regional health systems, national PE-backed neurology platforms, and other neurologists. The right buyer depends on your goals, such as legacy preservation, staff security, and the role you want to play post-sale.
What steps should I take to prepare my practice for sale?
Start planning 2-3 years before your intended exit. Key steps include preparation and valuation of your practice’s financials, confidential marketing to qualified buyers, vetting and negotiating with multiple parties, and managing due diligence through closing for a smooth transaction.
How is the value of my neurology practice determined?
Value is primarily based on Adjusted EBITDA, which normalizes earnings by accounting for owner-specific perks and one-time expenses. This figure is then multiplied by a factor depending on practice size and growth potential. Multi-provider practices might get 5.5x to 7.5x multiples, while smaller ones range from 3x to 5x.