A physician reached out to share a story that every practice owner needs to hear. He co owned a specialty group, scaled it to multiple locations, and sold it for a headline price of $10 million. It sounded like the dream exit. Then reality set in.

In this episode I walk through exactly how that $10 million purchase price eroded down to just $2.5 million in his pocket. We break down the numbers step by step: the 40 percent equity rollover, the salary cut after becoming an employee in his own clinic, the performance metrics and the million dollar clawback, the legal and broker fees, and the taxes. Then came the worst part. The private equity firm loaded the new company with debt, missed the expansion goals, and filed bankruptcy, wiping out the rolled equity overnight.

This is a real story with the specialty, name, and state changed for privacy and shared for entertainment purposes. It is not always a disaster, and a second bite can pay off, but you have to understand the gotchas before you ever sign. If you are a physician thinking about an exit, a divestiture, or your retirement strategy, watch this before you take the meeting.

I am Brad. I own a private practice, I am a practicing physician, and I help people start and scale medical practices. Reach out if you want to talk through your own situation.

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