Marblemont Lenders, a small-business funding service in Sherman, Texas, explains how a medical practice for sale is valued: earnings after a new owner's costs, tangible assets and patient retention. It covers evaluating a clinic, valuing it, buying it step by step and financing the purchase, with Grayson County physician counts from the Census Bureau.
Sherman, TX: How to Evaluate a Medical Practice for Sale
Start with the practice's own story told in numbers: three years of collections (not charges), the payer mix, the number of active patients, the providers who generate the revenue and whether they stay. Then read the costs a buyer would actually carry, including a market salary for the physician doing the work. A practice can look profitable only because the selling physician pays himself or herself less than the job is worth.
Nearly half of Grayson County's physician offices are small: 49.6% of the county's 113 offices of physicians had fewer than five employees in 2023 (County Business Patterns). In a small practice, the seller's personal relationships with patients and referring doctors are a large part of what is for sale.
How to Value a Medical Clinic as a Sherman, TX Business
- Earnings to a new owner Collections minus the costs a buyer will carry, including the buyer's own market salary
- Tangible assets Equipment, furniture, supplies and leasehold improvements, at current value
- Receivables Often kept by the seller or bought separately at a discount
- Goodwill The patient base and referral relationships, worth only as much as the share that stays
Valuation methods and multiples are the work of a practice appraiser; this article does not publish any. What a buyer controls is the quality of the records the appraiser and a funding partner will read.
How to Buy a Medical Clinic: A Grayson County, TX Checklist
- Sign a confidentiality agreement and request three years of financial statements and tax returns.
- Review collections by payer and by provider.
- Count active patients from the practice software.
- List equipment with ages and service records.
- Read the lease and whether it transfers.
- Agree the seller's transition period: introductions to patients and referring physicians.
- Have a health care lawyer review the purchase agreement.
Medical Clinic Loans for Grayson County, TX Owners
A practice purchase is usually split across funding shapes. The business and its goodwill suit a term loan. Equipment bought with the practice, or replaced soon after, can go on equipment financing with its own term. The months while insurance claims under the new owner's billing set-up start paying can call for working capital. The medical practice page covers each in more detail.
Medical Clinic Financing Around Sherman, TX
Illustration only, invented figures: a buyer agrees $520,000 for a family practice, made up of $90,000 in equipment and $430,000 for the business. The buyer puts in $70,000 and the seller carries $60,000 for five years. The term loan request is $300,000 ($430,000 - $70,000 - $60,000), and the equipment is a separate $90,000 equipment request. Splitting it this way lets the equipment carry a term that matches its life.
A partner will read the practice's records as if it were lending to the practice already, and the buyer's credit as the person who will run it.
The first ninety days after buying a Grayson County, TX practice
Claims billed under the new owner's provider numbers and contracts can take time to start paying, while payroll, rent and the new loan payment start at once. Plan the first ninety days of cash before closing: which receivables the seller keeps, when the first claims under the new owner should pay, and how payroll is covered until they do. A line of credit or working capital set up before closing gives the practice room before any gap appears.
What the Census Bureau counts for Grayson County, TX physician offices
Offices of physicians had 113 employer establishments in Grayson County in 2023, with 1,385 employees and $149.9 million in payroll (CBP), and 42 of them had a ZIP 75090 address (ZBP 2023). Health care and social assistance carried the county's largest payroll of any sector, $519.0 million. Further Grayson County figures sit on the Sherman, TX page; other articles are on the blog.
By Marblemont Lenders · Updated
