Selling your plastic surgery practice in Oregon presents a unique landscape. Recent state legislation has fundamentally changed the type of buyer you can attract, making the process different from nearly every other state. Your most likely buyer is now another physician or physician group, not a private equity firm. Understanding how to navigate this specific market is the first step toward a successful and profitable transition. This guide will walk you through the key considerations.
Market Overview
The Oregon market for medical practice sales is unlike any other in the country. The passage of Senate Bill 951 created the nation’s strongest barrier to non-physician ownership of medical practices. This means the large-scale investment from private equity that you see in other states is largely absent here. For a plastic surgeon looking to sell, this clarifies the field. Your focus is no longer on attracting corporate buyers but on positioning your practice as an ideal acquisition for an individual surgeon or an expanding physician group. This changes everything, from how you value your practice to the story you tell about its future potential.
Key Considerations
Given Oregons unique market, your preparation must be strategic and focused on what another physician values most. A successful sale here depends less on corporate deal structures and more on fundamental practice health. Here are three things to focus on well before you plan to sell.
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Your Timeline and Goals. A successful practice sale often takes 12 months or more from start to finish. You need to begin the preparation process as soon as you decide to sell. Clearly defining your goals, whether for retirement or a lifestyle change, will shape every decision you make.
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Your Practice’s Appeal. A physician-buyer is looking for a turnkey opportunity. This means showcasing an established patient base, strong referral networks, and clean, transparent financial records. They are buying the practice9s stability and future income potential.
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Your Advisory Team. You would not perform a complex surgery without a skilled team. Selling your practice is the most important financial transaction of your career and requires the same level of support. This includes legal counsel, valuation professionals, and M&A advisors who understand Oregon9s specific healthcare regulations.
Market Activity
While Oregon9s laws have cooled interest from institutional investors, it has created a focused and active market among physicians. We see successful surgeons and local multi-specialty groups actively looking for expansion opportunities. Well-run plastic surgery practices with strong profitability and a great reputation are not sitting on the shelf. Instead, they become highly sought-after assets for buyers seeking to grow their presence in a stable market. The right practice can command significant interest, but reaching these specific buyers requires a targeted, confidential process that a general business broker may not be equipped to handle.
The Sale Process
Selling a practice is a marathon, not a sprint. It follows a structured process that moves from internal preparation to a successful closing. Knowing the phases helps you prepare for what lies ahead.
Phase 1: Preparation and Valuation
This is where the foundation is laid. It involves organizing your financial and operational documents and, most importantly, getting a professional valuation. This valuation gives you a realistic understanding of what your practice is worth to a physician-buyer in the Oregon market.
Phase 2: Marketing and Negotiation
With a solid valuation in hand, the next step is confidentially marketing the practice to a curated pool of potential physician buyers. This is followed by fielding offers, negotiating terms, and signing a letter of intent (LOI) with the best-fit candidate.
Phase 3: Due Diligence and Closing
This is the most intensive phase. The buyer and their team will conduct a thorough review of your financials, compliance, HR, and corporate records. Being prepared is key, as this is where many deals encounter delays or fall apart. Once due diligence is cleared, the final purchase agreements are signed, and the transaction is closed.
Valuation
Understanding what your practice is worth is a critical first step. For a physician-to-physician sale in Oregon, value is about much more than just equipment and real estate. The starting point is often a metric called Adjusted EBITDA, which reflects your true profitability. However, the final price is heavily influenced by factors that another physician will care deeply about. They are buying your reputation, your patient loyalty, and your efficient systems. A professional valuation considers all these elements to determine a fair market price.
| Key Value Driver | Why It Matters to a Physician Buyer |
|---|---|
| Practice Reputation | A strong brand in the community means a steady stream of patients. |
| Provider Independence | If the practice runs well without you, it’s a less risky purchase. |
| Clean Financials | Organized books build trust and simplify the buyer’s financing process. |
| Experienced Staff | A skilled, loyal team is one of the most valuable assets a buyer can acquire. |
Post-Sale Considerations
The journey does not end the moment the sale documents are signed. A successful transition is a well-planned one. You will need a strategy for handling your medical malpractice tail coverage to protect yourself from future claims. If you own your building, you must decide whether to sell it with the practice or create a lease agreement with the new owner. There are also important notifications that must be made to patients, licensing boards, and insurance carriers. Proper planning ensures your professional legacy is protected and that your staff and patients experience a seamless and positive change. This is the final step in a well-managed exit.
Frequently Asked Questions
Who is the most likely buyer for a plastic surgery practice in Oregon?
Due to recent Oregon legislation, the most likely buyers are other physicians or physician groups, not private equity firms.
How long does the process of selling a plastic surgery practice in Oregon typically take?
The sale process often takes 12 months or more from start to finish, requiring early preparation.
What are the key factors that increase a plastic surgery practice’s appeal to physician buyers in Oregon?
Key factors include an established patient base, strong referral networks, clean and transparent financial records, and practice stability and future income potential.
How does Oregon’s Senate Bill 951 impact the sale of medical practices?
Senate Bill 951 creates strong barriers to non-physician ownership of medical practices, limiting buyers to physicians or physician groups and excluding large-scale private equity investment.
What post-sale considerations should a plastic surgery practice owner in Oregon prepare for?
Owners need to plan for medical malpractice tail coverage, decide whether to sell or lease their building, notify patients, licensing boards, and insurance carriers, and develop a transition plan to protect their legacy and ensure a smooth change for staff and patients.