Behind the Deal: A Medical Practice Sale That Ticked Every Box

Health & Medical Sector Case Study

The Practice

A medium-sized GP Medical Centre in Newcastle, NSW, had been a cornerstone of its community for over a decade. With 7 dedicated staff members, including a loyal receptionist who had been with the practice since 2009, the clinic enjoyed a strong, loyal patient base. 

Several doctors were independent contractors, which added flexibility to the service model. The practice had grown significantly over the years and benefited from recent refurbishments that gave it a fresh, welcoming atmosphere.

After years of building this business into a thriving practice, its owner was ready for retirement.

The Deal Background

Following a year of searching and a previously failed deal, a new buyer was finally found – one who shared the seller’s vision for the clinic.

With the support of a fantastic specialist business broker, the seller had reached a deal and now needed legal assistance to structure a business sale contract that reflected the business sale agreement which was to include a vendor finance component.

The business broker recommended Aspect Legal for our expertise in health sector business sales and also to ensure efficient service to facilitate the sale of their client’s medical centre before the end of the year (which was just 8 weeks away).

The Challenge

Key challenges included:

• Use of sophisticated payment structures (including Vendor Finance) 
• Concern over risks posed by the potential for the buyer to fail to pay on milestones – requiring comprehensive security for the seller (our client). 
• The staffing component of this business sale involved employees (including a long-standing employee with accumulated leave entitlements), and several independent contractor relationships.
• The assignment of the lease for the premises along with the business.

The Aspect Advantage

To meet our the seller’s timeframes, our team knew time was of the essence – especially with a lease assignment involved. We also knew they were keen to settle the sale quickly to ensure they secured the buyer. 

By using our industry-leading systems and processes (our Rapid Contracting Process), our team was able to prepare the business sale contract within just 2 days of receiving all the necessary information from the client.

To address the challenges, we ensured the resulting contract included:

• A clear vendor finance structure.
• Robust financial protections, including a General Security Agreement (GSA), monthly installment plan over 24 months and strict payment breach clauses to address vendor risk.

We also 

• Secured personal guarantees from the purchaser’s directors 
• And navigated lease assignment complexities. 

The result? A complete sale 6 weeks ahead of schedule, giving the seller, a clear path to retirement before Christmas

A Very Happy Referrer

“Alexandra an Tiana were proficient in their roles, smoothly handling the sale of a medical business from start to finish.. the communications with the broker and vendor were second to none… no delays in sharing information and prompt responses… EXACTLY what brokers need and wants! Thanks ladies… a pleasure doing business with you both!”
– Sally Stuart, Link Business Brokers

Ready to Navigate Your Practice Exit? Don’t leave your life’s work to chance!

Our proven systems and deep medical and health sector expertise transforms even complex practice sales into streamlined, successful business sale contracts. From solo clinics to multi-doctor, multi-site practices, we’ve got you covered.

Book a confidential, obligation-free consultation today.

• Gain clarity on your exit strategy
• Protect your practice’s legacy (and yourself)
• Secure the retirement you’ve worked hard for.

Your next chapter starts with one conversation. Book your 15min free call with one of our commercial legal eagles today!– Book a meeting with us now or call 1300 85 99 65

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