Selling a Healthcare Practice in California

California's healthcare market is the most active for private equity acquisitions in the country. DSO activity in dental, PE rollup in behavioral health and physical therapy, and health system consolidation in physician practices have all created a highly competitive buyer environment for well-run practices.

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5–9x
EBITDA multiple range for CA healthcare practices
Healthcare M&A Report
$500B+
California healthcare industry annual revenue
CA Dept. of Health Care Services
#1
state for healthcare PE acquisition volume nationally
PitchBook

What buyers focus on in California healthcare practice transactions

These are the items that consistently come up in due diligence and negotiation for healthcare practice businesses in California. Understanding them before going to market gives you time to address them.

California's corporate practice of medicine (CPOM) doctrine requires specific deal structures for physician practice acquisitions

Medi-Cal payer mix analysis is complex and affects value significantly for practices serving low-income populations

California's non-compete law is among the strictest in the nation; non-solicitation agreements are the only enforceable restriction

HIPAA-compliant data room setup is table stakes; California additionally has CMIA requirements layered on top

The preparation timeline that matters

Most owners underestimate how long it takes to prepare a healthcare practice business for sale. The items in the list above are not things you can address in the 30 days before you go to market. They require months of advance work. Owners who start early (typically 12 to 24 months before their target sale date) consistently achieve better terms than those who rush.

The free crash course gives you the framework. Seven lessons covering valuation, timing, financial preparation, due diligence, and deal structure. No account required.

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Start with the free crash course. Seven lessons on valuation, timing, due diligence, and deal structure. Built for owners with $500K to $25M in revenue.

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