---
title: Medical Practice Buy-in Advice for Doctors | Verity
description: Considering buying into a medical practice? Review sustainable profits, ownership structure, tax, borrowing and after-tax cashflow before you commit.
---

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For doctors considering practice ownership

# Buying into a medical practice?

The opportunity may feel right. But does the price reflect sustainable business profit, and what will be left after tax, loan repayments and other commitments? We help doctors examine the numbers, ownership structure and funding before they sign.

[Discuss your practice buy-in](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)[Explore tax and structure advice](https://www.verityadvisory.com.au/what-we-do/tax-advice/?hsLang=en-au)

You can start a conversation before all the financial documents are available.

When an ownership offer comes up

## The questions you may be wrestling with

Buying into a practice where you already work can be an exciting opportunity—especially when you know and trust the other doctors. It can also be difficult to challenge the assumptions behind the offer.

Am I buying profit—or paying for my own work?A busy medical practice can generate substantial billings without necessarily producing sustainable business profit beyond the clinicians' own earnings.

Can I afford the loan and still live comfortably?The purchase price is only the start. Tax, repayments, working capital, home debt and family commitments all compete for the same cash.

What influence will I have as an owner?A minority interest may not give you control over distributions, borrowing, staffing, new partners or when the business is sold.

What happens if things change?A partner leaves, the practice loses a key clinician or you want to step away. Ownership and exit arrangements matter well before any dispute arises.

What we assess

## Four tests behind a sound buy-in decision

The aim is not to make the purchase work at any cost. It is to understand the financial evidence, the trade-offs and the risks while you still have choices.

01Is the asking price supported?Examine the practice's historical results and the assumptions behind future earnings—including owner remuneration, service fees, staffing costs, rent, equipment and reliance on key practitioners. An independent valuation may be appropriate.

02What exactly are you acquiring?Shares, units and business assets can come with different tax consequences, rights, obligations and exposure to past liabilities. The agreed structure needs to work alongside the legal documents.

03What will you actually keep?Model expected income, business distributions and cash requirements after tax, interest, principal repayments and necessary reinvestment—not just the headline profit figure.

04Does it withstand a setback?Consider a lower-income year, a rise in costs or interest rates, delayed distributions, personal guarantees and the effect on future home or investment borrowing.

Before you commit

## What helps us understand the proposed deal

You do not need a complete due-diligence file for an initial conversation. These are the details we would normally seek as the assessment progresses.

1The offer and timelineIndicative price, percentage being offered, key dates and any heads of agreement or proposed deposit.

2Practice financial informationRecent financial statements, tax returns, BAS or management reports when available and appropriately authorised for review.

3Ownership and service arrangementsDraft shareholder or unitholder terms, practitioner service agreements, proposed distributions and relevant premises or lease obligations.

4Funding and your existing commitmentsAvailable contribution, indicative finance, home and investment loans, family expenses and future plans.

5Your reason for buyingWhat ownership needs to achieve for you—and whether being a partner is preferable to remaining a contractor or employee.

Don't send confidential practice records through a general website form. We will explain what documents are needed and how to share them securely.

## A clearer decision—not just a way to fund it

We approach the buy-in as a business and tax decision first. Borrowing, personal commitments and long-term wealth goals then need to fit around it. The right answer may be to proceed, renegotiate, delay or decline.

- Review the commercial numbers: the evidence behind the price, sustainable earnings and the financial assumptions that matter.
- Consider tax and ownership: shares, units or assets; profit distributions; existing liabilities; and the future consequences of the proposed structure.
- Test funding and cashflow: repayments, working capital, household commitments, guarantees and a more difficult trading scenario.
- Coordinate the right professionals: involve the transaction lawyer, lender and a specialist business valuer when their expertise is needed.

The aim is to understand what you're agreeing to while there is still time to make a different decision.

Verity's approach

### Being able to borrow does not mean you should buy

We bring tax, practice finances and lending considerations into the same discussion, without assuming every opportunity is the right one. We explain the proposed scope and fees before paid work begins. Legal drafting and formal independent valuations are separate specialist services.

## Questions doctors ask before buying into a practice

How can I tell whether a practice buy-in price is reasonable?

Start with sustainable practice earnings, not just turnover or the seller's asking price. Review historical results, the cost of remunerating clinicians for their work, practice overheads, future investment needs, leases and reliance on key practitioners. An independent business valuation may be appropriate. We can help analyse the financial assumptions and identify what specialist work is needed.

Should I buy shares, units or business assets?

There is no universally best structure. Each can produce different ownership rights, tax consequences, financing requirements and exposure to existing obligations. The appropriate approach depends on the entity, assets, contracts, parties and exit plans. Your tax adviser and transaction lawyer should review the arrangement before it is finalised.

What if I am buying a minority interest?

Pay particular attention to voting rights, profit distributions, director responsibilities, future funding calls, transfers, partner departures and how the interest would be valued if you leave. Your lawyer should review the proposed shareholder or unitholder agreement.

Can I borrow to fund the buy-in without affecting my home loan?

Possibly, but lender policies, business earnings, income history, deposit, security, guarantees and existing commitments all matter. Practice debt or guarantees can reduce the flexibility available for a later home or investment purchase. It is worth assessing both decisions together.

What is the difference between practice profit and my clinical income?

As a doctor you may be paid for the clinical work you perform. A practice investment should be assessed separately for any sustainable business return after appropriate expenses and remuneration for working practitioners. The way the practice is structured and pays its clinicians matters.

Could I inherit tax, payroll or employment liabilities?

The exposure depends on what you acquire, which entity holds the obligations, the applicable laws and the purchase terms. Historic tax compliance, practitioner arrangements, employee entitlements and other liabilities should be considered as part of appropriate tax and legal due diligence.

Does Verity provide formal practice valuations and legal advice?

We can review financial and tax considerations and help assess funding within the agreed engagement. Where a formal independent valuation, transaction-specific legal due diligence or contract drafting is needed, those services should be provided by appropriately qualified specialists. We can coordinate with them as relevant.

When should I seek advice?

Ideally before you sign binding heads of agreement, commit to a non-refundable deposit, offer personal guarantees or agree on ownership documents. Even an informal offer is enough to start clarifying the questions and documents required.

What if the financial records are not available yet?

You can still arrange an initial conversation. Explain what is being offered, the proposed price and timing, and what information you have. We can discuss what should be requested before a more detailed assessment is undertaken.

## Before you sign, understand the numbers

An ownership opportunity can be a major step in your career. A short initial conversation can clarify the financial and tax questions to resolve before you commit and what advice or specialist work may be needed.

[Discuss a practice buy-in](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)

## Considering an offer to buy into a medical practice?

Perhaps a colleague has proposed a share of the practice, the purchase price has been discussed, or the documents are already being prepared. Tell us where the decision stands and what is uncertain.

We can discuss the issues worth resolving, which documents may be needed, and the likely scope and cost of further work before you proceed.

[1300 173 103](tel:1300173103)[info@verityadvisory.com.au](mailto:info@verityadvisory.com.au)Suite 10, 39 Jeays St, Bowen Hills QLD 4006[Book a 15-minute discovery call →](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)

VERITY ADVISORY

Financial guidance for doctors.

Suite 10, 39 Jeays St, Bowen Hills QLD 4006

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