How to Prepare Your Psychiatry Practice for a Successful Sale

Business owner celebrating successful merger deal completion

Selling a psychiatry practice is one of the most significant decisions you’ll ever make. It impacts your career, your finances, and the patients and staff who rely on you. The process can feel overwhelming, but with the right preparation, you’ll walk into negotiations confident and in control.

Want insider strategies on how private equity buyers evaluate practices? Download our free guide: 5 Private Equity Secrets: How to Maximize the Sale of Your Behavioral Health Business.

Step 1: Define Your Objectives

Decide whether you’re selling to maximize profit, retire, or reduce stress. Your priorities will serve as your North Star throughout the process.

Step 2: Prepare Emotionally

It’s more than a business transaction—it’s personal. Plan how you’ll manage the transition both professionally and emotionally.

Step 3: Organize Financial Records

Buyers will want at least three years of financials. Clear, accurate bookkeeping signals credibility. Behavioral health M&A activity has been strong, according to Reuters, making organized records more important than ever.

Step 4: Assess Profitability

Identify one-time or discretionary expenses. This helps buyers understand your practice’s “true” earning power and boosts valuation confidence.

Step 5: Assemble a Support Team

You’re not alone in this. Get an attorney, accountant, and an M&A advisor who specializes in healthcare. This team elevates your negotiating position and protects your interests.

Step 6: Get a Professional Valuation

A proper valuation from someone familiar with psychiatry and behavioral health is essential. It sets realistic expectations for you and your buyers. The American Psychiatric Association offers practice resources that can help you better understand compliance and operational readiness before selling.

Before you sell, know your worth. Try our free Business Valuation Calculator for a 60-second, data-backed valuation.

Step 7: Gather Due Diligence Materials

Prepare documents like contracts, leases, payor agreements, HR policies, and compliance records. A clean, organized data room makes you more attractive to serious buyers.

Step 8: Showcase Your Strengths

Your reputation, patient outcomes, and unique programs differentiate you—highlight them clearly. Strong storytelling around your practice’s successes will increase perceived value.

Step 9: Identify Potential Buyers

Use your advisor’s network to reach private equity firms, health systems, and strategic buyers. Casting a wide net helps you secure the most competitive offer.

Ready to Take the Next Step?

Preparation is everything. The more you plan ahead, the stronger your position will be at the negotiating table.

Download our free 5 Private Equity Secrets guide to learn how buyers really think.
Or, let’s talk confidentially:Tony Siebel
Managing Director, Olympic M&A
502.360.8320 | tonys@olympicma.com
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About The Author

Tony Siebel is the Managing Director of Olympic M&A, a Louisville-based advisory firm
specializing in healthcare and high-value service businesses. With more than seven
years of experience in psychiatry, behavioral health, physician practices, and recurring
service industries, he has built a reputation for helping founders capture the full value of
their life’s work.
Through Olympic M&A, Tony connects owners with private equity groups, family offices,
and strategic buyers nationwide. His hands-on, data-driven approach ensures owners
maximize value while protecting their legacy during the most important transaction of
their lives.

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