Start by writing down the help you need. Finding buyers, preparing the practice, negotiating an offer and managing the sale are different tasks. Establish who will do each one before you sign an engagement.
You also need enough understanding of your practice and the sale to question the advice. A medical practice broker may bring transaction experience. You bring knowledge of the practice, its people and what you are prepared to commit to after selling.
What should a medical practice broker do?
A broker can prepare marketing material, approach and assess buyers, arrange meetings and negotiate a sale. Business Queensland's guide to preparing a business for sale describes these services and recommends checking experience, fees, workload and the proposed strategy.
Ask for a written scope. Find out whether it includes preparing an information memorandum, reviewing gaps in your documents, coordinating due diligence and following the transaction through to settlement. Confirm who does the work and how often they report to you.
For a GP practice, ask about completed transactions involving a similar ownership structure and operating model. Request references from previous sellers, with their permission. Check the person's credentials and any licence required for the services they propose.
A sale also involves financial and legal decisions. Agree what your accountant, lawyer and any independent valuer will handle, and how their work fits with the broker's role.
Ask how they will find suitable buyers
A buyer database is a starting point. Ask how the adviser will identify other parties with a reason to acquire your particular practice.
For example, a nearby independent operator may want another location. An existing GP may want to become an owner. A larger group may be looking for practices in your region. Each possibility needs investigation: interest, funding capacity and the ability to operate the practice all count.
Aim for three qualified buyers from whom you can seek comparable written proposals. That is a practical target, and the number available will depend on your practice and the market. Ask what the adviser would do if only one suitable buyer emerged.
Request a plan that explains which types of buyers will be considered, why they might be a fit, and how you will test their interest. Agree when you will approve approaches and what information can be released at each stage. Discuss how the practice's identity, commercial information and personal information will be protected.
Compare the full fee and its payment terms
When comparing medical practice broker fees, ask each provider to explain the total cost for the same proposed transaction. Establish whether the quote includes a percentage commission, a fixed fee, a minimum payment, marketing expenses or other charges.
Have them answer these questions in writing:
- What must I pay before work starts, and is any of it refundable?
- Which services and expenses are included, and which require separate approval?
- Does the quoted amount include GST?
- When does the fee become payable: on signing, settlement or another event?
- How is the fee calculated if payment includes an earnout, retained equity or vendor finance?
- What would I owe if the buyer withdraws, I decide to stop or the sale does not complete?
An earnout makes part of your payment depend on future performance. If an adviser's fee is calculated on an amount you may receive later, ask what happens if that amount is reduced or never paid. Have your lawyer confirm the agreement reflects that answer.
Compare the fee with the work being undertaken and the responsibilities you retain. Include your separate accounting, legal and valuation costs when planning the sale budget.
Read the exclusivity terms before appointing anyone
An agency engagement can affect your ability to use another adviser or proceed with a buyer you find yourself. Ask your lawyer to review its duration, termination provisions and the circumstances in which a fee remains payable.
If a GP in the practice or a nearby operator has already approached you, identify that party before signing. Ask how the engagement treats existing contacts, introductions made during the appointment and sales completed after it ends. Clarify any overlap with an earlier agency agreement.
Keep the adviser's appointment separate from a buyer's request for exclusivity during due diligence. They are different agreements with different consequences. Understand both before restricting whom you can work with or approach.
Establish who the adviser acts for
Ask who the client is, who pays the adviser and whether they have another financial interest in the transaction. Request disclosure of referral payments and relevant relationships with buyers or other advisers.
Apply those questions to every provider, including Proxeno. A fixed completion fee gives a provider a financial interest in the sale completing. The payment structure, disclosed interests and agreed scope all deserve scrutiny.
When someone recommends accepting an offer, ask them to explain the alternatives they considered. You should understand the money payable at settlement, any conditional payments and the clinical or management work expected of you afterwards. Your advisers should help you assess those commitments against your own priorities.
Can you manage the sale yourself?
Managing the process yourself means taking responsibility for the buyer search, correspondence, meetings and document requests alongside the practice's daily work. Consider who will maintain the timetable and follow up when progress slows.
An internal sale to an existing GP still needs preparation. You need agreement on what is being acquired, a basis for the price, funding arrangements and a workable handover. Familiarity with the buyer leaves those tasks to be resolved.
Before choosing this route, list what you can undertake and what you will delegate. The guide to selling a medical practice sets out the stages. The practice valuation guide explains the questions to take to your accountant and valuer.
Where Proxeno fits
Proxeno matches general practices with buyers. It organises practice information and owners' preferences, and uses GP ownership data to identify buyers worth approaching. You can run its process yourself or have a consultant work alongside you. Compare the two seller options.
Under Proxeno's consultant standards, the consultant acts for one named party. The work covers operational preparation and briefing the owner. The owner and buyer agree terms directly. Your accountant provides financial advice, your lawyer handles contracts, and an independent valuer you engage provides the valuation.
Proxeno agrees fixed fees in writing before work starts, including an upfront fee and a completion fee. Optional preparation work is quoted separately. Check current fees and inclusions against what you need.
Before appointing anyone, ask for their proposed buyer search, scope, fees and engagement terms. Then compare what each provider will take responsibility for and decide which work you want to retain.