Guide to Selling a Urgent Care Practice in Nashville, TN

Selling your Urgent Care practice is a major decision. You have built something valuable, and now you are thinking about the next chapter. The Nashville market is one of the most active in the country, creating significant opportunities for owners like you. This guide is designed to give you a clear overview of the current landscape, from understanding your practice’s value to navigating the sale process, so you can move forward with confidence.

Market Overview: A Snapshot of Nashville’s Urgent Care Landscape

The urgent care market in Nashville is booming. This is not just a feeling; the numbers back it up. Between 2019 and 2023, Tennessee saw its number of urgent care centers jump from 403 to over 500. This growth reflects a major shift in how patients, particularly younger generations, access healthcare. They value the convenience and accessibility that a practice like yours provides.

This demand is happening within one of the nation’s most robust healthcare economies. Nashville’s core healthcare sector has added over 10,000 jobs in recent years, with wages significantly outpacing the city’s average. For a practice owner, this all points to one thing: your urgent care center is a valuable asset in a high-demand market. The question is no longer if there is interest, but how to best position your practice to attract the right buyers.

Key Considerations Before You Sell

While the Nashville market is strong, a successful sale depends on navigating a few critical areas. Preparing for these ahead of time can prevent surprises during due diligence and significantly increase your practice’s value. I’ve seen many deals encounter challenges in these specific areas.

Here are a few things to think about:

1. Regulatory Compliance. Tennessee has its own specific laws, like the Corporate Practice of Medicine doctrine, that can be complex. Buyers will perform a deep dive into your compliance history. Any identified risks can lower the value of your practice or even cause a deal to fail.
2. Your Staff and Providers. In a tight labor market, a stable, experienced team is one of your most valuable assets. High turnover or heavy reliance on a single provider can be a red flag for buyers who are looking for a scalable, resilient business.
3. Your Payer Contracts. For many independent practices, negotiating favorable rates with large commercial payers is a constant struggle. A well-diversified mix of payer contracts with solid reimbursement rates makes your practice far more attractive to a potential partner.

Market Activity: Who Is Buying and Why

The demand for urgent care practices in Nashville is not abstract. It is being driven by sophisticated buyers who are actively acquiring practices right now. Large hospital systems, including Nashville-based giants like HCA Healthcare and Ardent Health, see urgent care as a vital entry point into the community. Acquiring a practice like yours helps them expand their reach, manage patient flow more efficiently, and create a direct pipeline for specialty care referrals.

Private equity firms are also major players. They see the urgent care sector as a growth industry and provide capital to help practices expand and professionalize. This means you are not just selling to another doctor. You are often selling to a strategic or financial partner with a clear plan for growth. Understanding what each type of buyer is looking for is the first step in positioning your practice to command a premium valuation.

The Four Stages of the Sale Process

Selling a practice can feel overwhelming, but it follows a structured path. When you break it down, the process becomes much more manageable. Generally, it involves four main stages.

Stage 1: Preparation and Valuation

This is where the most important work happens, often months before your practice is ever shown to a buyer. It involves cleaning up your financial statements, organizing key documents, and getting a comprehensive, professional valuation. This step ensures you know what your practice is truly worth and are ready for buyer scrutiny.

Stage 2: Confidential Marketing

Once you are prepared, the next step is finding the right buyers without disrupting your staff, patients, or competitors. This is done through a confidential process that targets a pre-qualified list of strategic and financial buyers who are a good fit for your practice and goals.

Stage 3: Negotiation and Due Diligence

After you receive offers, you select the best partner and enter a formal due diligence period. This is where the buyer and their team will pore over your financials, operations, and compliance records. It is the most intensive phase of the sale, and where many deals can run into trouble if the preparation in Stage 1 was not thorough.

Stage 4: Closing and Transition

This final stage involves finalizing the legal sale documents and planning for the transition of ownership. A well-managed process ensures a smooth handover for you, your staff, and your patients.

How Your Urgent Care Practice is Valued

Understanding what your practice is worth is the foundation of a successful sale. While many factors are considered, the valuation process for most urgent care centers starts with a key metric: Adjusted EBITDA. This is not the same as the profit on your tax return. Adjusted EBITDA calculates your practice’s true cash flow by adding back owner-specific expenses like excess salary, personal vehicle leases, or other non-operational costs. This gives buyers a clear picture of the practice’s core profitability.

This Adjusted EBITDA figure is then multiplied by a number based on current market conditions. Larger, more profitable practices typically command higher multiples because they are seen as less risky investments.

Here is a general look at the multiples buyers are paying today:

This table is just a starting point. The final multiple depends on your growth rate, provider model, and the quality of your payer contracts. Getting an accurate valuation requires a deep look into your specific business, not just applying a generic formula.

Planning for Life After the Sale

The final sale price is important, but the structure of the deal will define your life for years to come. Thinking about your post-sale goals early in the process is critical. Do you want to leave clinical practice immediately, or would you prefer to stay on for a few years? Your answer will help determine the right type of buyer and the right deal structure for you. A good advisor helps you negotiate not just for price, but for your future.

Protecting your team and your legacy is also a major part of the equation. The right partner will value the culture you have built and want to retain your key staff. Furthermore, the way your deal is structured has massive tax implications. Options like earnouts or rolling a portion of your equity into the new company can provide significant financial upside, but they also come with their own risks and rewards. Planning for these details ensures the transition is a success for everyone involved long after the papers are signed.