What should a medical clinic listing tell me before I sign an NDA?
A good medical clinic listing says what kind of clinic it is, how physician coverage and hours are arranged, who works the shifts, how long the lease runs, how large the staff is and what is included in the sale. Gaps in those basics are worth a question to the broker before you sign anything.
A listing is a short summary, and it is written to be anonymous. You cannot expect names or financial statements before an NDA. You can expect enough to decide whether the clinic is the kind you could run. If the listing is too thin for that, ask the broker or seller for a few more words before you hand over your details.
What kind of clinic is it
A walk-in clinic, a family practice and a specialty clinic run very differently. The listing should say which one it is, how the hours work and whether patients are seen by appointment, on a drop-in basis or both. If the wording is vague, ask the broker to describe a normal week in plain terms.
Who covers the shifts
The clinic is only as steady as the physicians in it. Look for how many doctors work there, whether they are long-standing associates or locums and whether the owner works shifts personally. Ask whether the physicians would stay after a sale. Their own agreements decide that, so a lawyer should read them later.
Premises, staff and what is included
Check how long the lease has left and whether the landlord must agree to a new tenant. Note the size of the non-physician staff and what the sale covers: equipment, supplies, the name and phone number, and any related services. Anything left out should be stated, not guessed. See also how to find a walk-in or medical clinic for sale.
- Clinic type, hours and how patients are booked
- Physician coverage and who works the shifts
- Lease term and landlord consent
- Staff size and what the sale includes
Related reading
10 pages on the same subject, grouped by topic.
Buying
- GuideBuying a medical clinic or family practice in Canada
- Expert answerHow do I find a walk-in or medical clinic for sale?
- Expert answerCan I take over the OHIP billing number when I buy a medical practice?
- Expert answerHow can I tell if a private medical lab is profitable?
- Expert answerHow do I find a foot clinic or orthotics business for sale?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWorking with a broker to find a business to buy
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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