Healthcare practice M&A
Data room for selling a medical practice
ClosingVault is a data room for selling a physician or specialty medical practice, for any lower-middle-market deal up to $50 million. Payer reports, contracts and credentialing files go in from the practice administrator in batches, each is filed to the checklist item it answers, and the physician owners decide the LOI by their share of the practice.
Last updated: 2026-11-03
What do buyers of a medical practice ask for in diligence?
A practice is valued on what its providers produce and what payers pay for it, so that is where diligence goes first.
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Payer mix and collections by payer
Collections split between commercial plans, government programs and self-pay, with the receivables aging by payer.
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Payer contracts and fee schedules
The commercial payer agreements and their reimbursement rates, and when each renews.
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Provider agreements and production
Employment and compensation agreements for physicians and advanced practice providers, with production by provider over several years.
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Licenses and credentialing
State licenses, registrations and board certifications for each provider, and the practice’s payer credentialing status.
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Billing and coding
The billing company agreement if there is one, internal coding reviews, and denial and write-off history.
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Facility and equipment
Office leases, imaging and clinical equipment, and the service contracts on them.
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Referral relationships
Where new patients come from, and any medical director or other agreements with referral sources.
What do buyers look hardest at in a practice sale?
The providers. A buyer is paying for production that walks out the door every evening, so provider agreements, compensation and whether the selling physicians will keep practicing after closing come up early and often.
Then the revenue quality: payer contracts that may need to be renegotiated or re-credentialed under a new owner, collections that don’t tie to the billing reports, and coding that a buyer’s reviewers will test. Clean monthly reports from the billing system, filed by period, shorten that part.
How does ClosingVault handle a medical practice sale?
The administrator uploads; the physician owners decide.
How long does a practice data room take to set up?
About 3 minutes with the standard checklist. It already asks for Business Operating Licenses & Permits, Key Employee & Executive Agreements, the Non-Compete, Non-Solicit & Confidentiality Agreements, the Professional Liability (E&O) policy, the Accounts Receivable Aging Schedule and Regulatory & Government Correspondence. Add payer contracts and credentialing items from your own Excel list. From there it’s fully customizable for any lower-middle-market deal up to $50 million: phases and dates, who can download, and when each buyer’s access ends. The free due diligence checklist is the same standard checklist, as an Excel download.
What does it cost?
Plans start at $79 a month, billed yearly (founding price). The firm that opens the room pays. Invited buyers, sellers, owners and their teams are always free and unlimited. Every plan and price, or see ClosingVault next to seven low-cost data rooms, step by step.
Medical practices data room questions
I’m one of five physician owners of an $18 million orthopedic practice and a
PE-backed platform sent an LOI. How do we decide it in the room?
By ownership. The room admin enters each physician with their share of the practice, and the LOI is accepted, countered or declined only when owners holding more than half of the practice approve, with every vote on the record.
Our credentialing files have every provider’s Social Security number and date of
birth. Will buyers see them?
No. Social Security numbers are removed automatically, and so are labeled dates of birth, driver’s license and passport entries, before any buyer sees the file.
I’m a practice broker and the buyer wants collections by payer for three years.
Can the seller just upload the billing company’s monthly reports?
Yes. Drop them in as they come, in batches of any size; each report is filed by topic and period, and exact duplicates are skipped.
We’re selling to a hospital system and want them to read our payer contracts but
not download them. Can we do that?
Yes. You decide person by person who may download; everyone else reads in a viewer stamped with their name and the time, with printing and copying suppressed.
I’m the practice administrator and I’m doing all the uploads. Can I vote on the
LOI?
No. The seller’s team can upload, link documents, certify and answer questions, but can’t decide, vote or set exclusivity; only the owners do.
We lease our office and own no real estate. Does the deeds item stay open?
No. You close it by signing that it doesn’t apply, and the statement stays on the record with your name, the time and your exact words.
More from ClosingVault
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