Thanks, Sean. Had a good call with the seller and still unpacking some of what I heard/learned. Having a bit of a tough time determining a valuation as don’t know what is customary in the medical services industry. Based on what I see though, I can’t justify the asking price.

If insurance based, you'll need to look at each insurer's contract to see if it transfers to the new owner or not. If not, you'll need those in place before you start billing as the new owner. Something to keep in mind because getting those contracts can take months and you may not be able to bill for any services you provide during that time. Another concern with insurance based medical practices is the issue of clawbacks, which can happen years after the claims were paid. This is important if the acquisition is via stock sale. You might want to hold some amount of payment in escrow for 2-3 years to be used to pay for clawbacks if they happen. Lots more to look out for when purchasing a medical business. Happy to chat more if you need.