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You should allow two years from the time you start the process of selling your practice until you actually retire. In rural areas, it may take much longer, as today's buyers often have an employed spouse who will also need to secure a job.
Initially, you will need to gather all of the information, that a potential buyer, their lawyer, accountant, consultant, banker and other key advisors, will need to assess the practice opportunity. Generally, it is best to summarize the information in a report which also supports the asking price for the practice. Then there is the time required for marketing the practice, interacting with buyers and their advisors, arranging the financing, etc.
If the buyer is not currently licensed in your state, it can easily take six months to obtain the license. Then, the buyer can apply to third-party payers for credentialing, that will take more than six months in many metropolitan areas. If all goes smoothly, the buyer is likely to want the seller to assist with a transition period, which has no correct length of time. Three months may be adequate for many practices, but someone out of residency might desire a much longer period, during which the sellers hours are gradually reduced.
If you are fortunate enough to have a local physician purchase your practice, the entire process may take only a few months, as they will already be licensed, credentialed in the major plans, and not require a long transition period.
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