Guide to Selling a Neurology Practice in Columbus, OH

Deciding to sell your neurology practice is a significant career milestone. The Columbus market presents a unique landscape, with a growing demand for neurological care set against economic headwinds like cost inflation and reimbursement cuts. Navigating this environment to achieve an optimal outcome requires a clear understanding of your practice’s value and a strategic approach to the sale process. This guide provides the insights you need to get started.

Market Overview

The current market for neurology practices is a study in contrasts. Nationally, the demand for neurological services is surging. The market is projected to grow at over 7% annually through 2029. This growth is driven by an aging population and an increasing burden of neurological disorders. At the same time, practice owners face very real pressures. Rising operational costs and successive Medicare payment reductions are squeezing margins for many independent physicians.

The National Climate

Across the country, we see these pressures pushing more independent practices toward consolidation. Physician practice M&A activity has more than doubled since 2019, as owners seek the scale and administrative support that larger groups or health systems can provide. Buyers are actively looking for well-run practices to meet the growing patient demand.

The Columbus Opportunity

In Columbus, this national trend translates into a significant opportunity. Your established practice represents a valuable, turn-key solution in a high-demand field. For a potential buyer, acquiring your practice is far more efficient than building one from the ground up, especially given the local competition and healthcare landscape. The key is to position your practice to highlight its strengths in this favorable, yet complex, environment.

Key Considerations

When preparing your Columbus neurology practice for sale, your biggest challenges can become your greatest strengths. The nationwide shortage of neurologists is a key example. Projections show a nearly 20% gap in neurologist staffing by 2025. This makes your established practice, with its patient base and referral network, a highly attractive asset. You are not just selling equipment and a lease; you are selling immediate access to a market with high barriers to entry.

A buyer is looking for a smooth transition. Highlighting your efficient administrative processes, well-trained staff, and strong local reputation is important. It’s about building a compelling narrative. Show how your practice is already positioned to handle the administrative burdens that overwhelm many physicians. Proving this requires clean financial records and a clear understanding of your key metrics, turning potential buyer concerns into a story of stability and growth potential.

Market Activity

The market for physician practices is active. While specific data for neurology practice sales in Columbus is not public, the broader trends show a clear momentum that you can leverage. Here are three key dynamics we are seeing.

1. A Surge in Transactions. Nationally, the number of physician practice deals more than doubled between 2019 and 2023. This shows a sustained appetite from buyers, including private equity groups and health systems, who are looking for strategic acquisitions. Your practice is part of a sought-after asset class.

2. Varied Local Valuations. Looking at sales of other medical practices in the Columbus area, we see a wide range of values. Primary care clinics have listed for $250,000 to over $700,000. The final price depends heavily on cash flow, patient mix, and growth potential. This variation underscores the need for a specialty-specific valuation.

3. The Information Advantage. The lack of public data for neurology sales means that owners who rely on general information are at a disadvantage. Buyers have teams that analyze the market. Partnering with an advisor who has a proprietary database of private transactions is the only way to level the playing field and understand what your peers’ practices have truly sold for.

The Sale Process

Many physicians think about selling only when they are ready to exit. However, the most successful sales are those planned years in advance. Buyers do not pay for potential. They pay for proven, documented performance. Starting the process 2-3 years before your target sale date gives you time to optimize operations and financials to command a premium valuation.

The journey typically begins with a comprehensive valuation to set a realistic baseline. From there, we work with you to prepare a confidential marketing package that tells your practice’s story. This is followed by a managed process of approaching a curated list of qualified buyers. The most critical stage is often due diligence, where the buyer scrutinizes every aspect of your practice. This is where most self-managed sales encounter unexpected problems. Proper preparation can make this phase smooth and predictable, leading to a successful closing that meets your personal and financial goals.

Understanding Your Practice’s Value

A professional valuation is the foundation of any successful sale. While rules of thumb like a multiple of revenue exist, sophisticated buyers focus on a metric called Adjusted EBITDA. This is your Earnings Before Interest, Taxes, Depreciation, and Amortization, but “normalized” to reflect the true, ongoing profitability of the practice. It removes owner-specific perks or one-time expenses that a new owner would not incur.

Many practice owners are surprised to learn how this process can increase their practice’s value. For example, if your a practice reports $500K in profit but the owner-physician pays themselves a salary that is $150K above the market rate for a replacement, that $150K can be added back.

Here is a simplified example:

This Adjusted EBITDA, not your reported profit, is the number a buyer will apply a multiple to. Getting this calculation right is the difference between an average outcome and a premium valuation.

After the Sale: Planning Your Transition

The day the deal closes is not the end of your journey. It is the beginning of a transition. Planning for this phase is critical to protecting your legacy and ensuring the continued success of the practice you built. Buyers will want to know about your willingness to stay on for a period to ensure a smooth handover of patient relationships and to help retain key staff. Open communication with your team, guided by a well-thought-out plan, is the best way to manage this change.

Furthermore, how your deal is structured has major implications. Some owners want a clean break, while others want to remain involved clinically. You might even consider “rolling over” a portion of your sale proceeds into equity in the new, larger company. This allows you to take cash off the table now while also participating in the future growth of the platform, offering a potential “second bite of the apple” when the larger entity is sold again. These structures require careful planning and an advisor who understands your personal and financial goals.