Practice transition

A practice transition covers everything an outright asset or share sale does not: keeping clients or patients through the change, satisfying the professional college or governing body, and often phasing the handover so the outgoing practitioner stays involved for a period rather than leaving the day the deal closes.

What makes a transition different from a straight sale

Most professional practices carry restrictions an ordinary business does not — non-compete or non-solicitation limits set by a governing body, requirements around notifying clients or patients of the change, and rules about who is even eligible to acquire the practice. Valuation is also less straightforward, since goodwill is tied closely to the departing practitioner’s personal relationships and reputation, not just the business’s financials.

Typical structure

• A transition period where the outgoing practitioner continues working part-time to introduce clients to the successor.
• A phased payout tied to client or patient retention rather than a single lump sum at closing.
• Notice to the professional college or licensing body, which may run its own approval or notification process.