Buying a medical practice: are you ready to make the right decision?

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Read time 3 min

Monday, 15 Jun 2026

When you are preparing to buy a medical practice, it may help to download our checklist and follow along as you read. If you answer no or unsure to any section, it does not necessarily mean you should not proceed. Instead, it shows you where to slow down, ask more questions and get advice before moving forward. 

Pre-Contract considerations 

Before any contract is drafted, you need clarity on the important commercial terms. A term sheet or non-binding offer can help you test alignment early and reduce time spent negotiating later. If you are unsure about the structure of your offer or the best way to document key terms, this is a good point to seek accounting and legal support.

Due diligence is one of the most important stages. If you respond no or unsure here, it is worth asking what you have not yet reviewed. Have you assessed the business operations, financial performance, tax position and existing contracts? Have you explored customer relationships, equipment ownership and any risks hidden within the business? A thorough review helps confirm that the practice you expect to buy is the one you will actually receive. 

You should also consider financing. If you are unsure whether you have enough time or flexibility built into the offer to finalise finance, this is something to address before committing. Working closely with a finance specialist who can guide you through the process is fundamental. 

Structuring the acquisition 

Choosing between an asset purchase and a share or unit acquisition can have major tax and risk implications. If you are not sure which structure suits your situation, the next step is to ask how ownership, liabilities and long-term strategy fit together. You may also want to consider whether the payment terms should include deferred payments or adjustments linked to performance after settlement. 

The right structure helps protect your investment, manage risk and avoid unintended tax consequences. 

Contract negotiation 

Once the major terms are agreed, the sale contract sets the rules for the transaction. If you are unsure about any part of the contract, consider what practical impact it might have after settlement. 

Staffing is often overlooked. If key doctors or employees have not formally agreed to transfer, you may risk losing essential personnel. This section also covers employee entitlements, which can significantly affect the financial position of the transaction. If you do not know which entitlements you will be taking on, that is an issue to resolve before the contract is finalised. 

You should also look at plant and equipment ownership, service contracts and practice incentives. If you are unsure whether certain contracts can be assigned or whether equipment is owned, leased or financed, these are red flags that require clarification. 

Lease and premises arrangements 

The premises are central to the ongoing operation of a medical practice. If you do not know whether you should negotiate a new lease or accept an assignment of the existing one, consider the remaining term, rental conditions, and whether the current lease supports your long-term plans. In some cases, a new lease may provide better commercial terms or fit-out incentives. 

It is also important to confirm whether any allied health providers sublease space within the practice and whether those arrangements comply with the permitted practices legislation. 

Regulatory and compliance requirements 

If you answer no or unsure here, it may indicate gaps in understanding what licences or regulatory approvals are needed. Licences do not always transfer automatically. You may need to confirm how patient records can be transferred, what notifications must be made and how privacy obligations will be met. 

You should also identify all intellectual property linked to the practice, including websites, business names, trademarks and social media accounts. Knowing who owns these assets helps prevent issues during handover. 

Settlement and final steps 

Settlement brings together all the moving parts of the transaction. If you are not clear about timelines, conditions precedent or required notifications, it is worth reviewing these early to avoid accidental breaches. 

Key tasks include confirming that encumbrances have been released, ensuring adjustments for rent and expenses are correct, checking stocktake procedures and determining whether transfer duty applies. These steps ensure that the practice transfers cleanly and without historical liabilities. 

Final thoughts and next steps

A no or unsure response is not a barrier to buying a practice. It simply highlights where you need more information before making a confident decision. Understanding each stage of the process helps protect your investment and positions you to take over the business with clarity and control. 

If you have any questions, or would like more information about how we can assist you or your practice, please call 1800 867 113, or to organise a confidential discussion at a time that suits you, please click here.