Many medical practice owners in the UK aim to sell at what they believe will be the optimal moment. However, healthcare brokerage Verilo warns that postponing an exit can create less visible costs that reduce value and limit strategic flexibility.
Although demand for private healthcare services remains strong, the wider commercial climate is tightening.
Official data from the ONS recorded 63,205 business closures in the UK in Quarter 3 of 2025, compared with 73,450 start-ups.
Figures from the Insolvency Service indicate company insolvencies increased by 15% year-on-year in May 2025, slightly above 2024 levels and close to the peak seen in 2023.
Verilo notes that the financial impact of waiting is often subtle in the early stages.
An owner reviewing current performance may see steady turnover and patient flow, with no immediate signal to sell.
Yet maintaining those results increasingly depends on absorbing higher costs or committing further capital to keep pace with market expectations. Over time this pressure builds.
Profit margins narrow, investment needs rise and owners end up exerting more effort simply to maintain the same position.
When the downturn becomes evident in financial statements, buyer interest may already have reduced and negotiating strength weakened.
While healthcare is generally robust, delaying action until issues are clear can mean the opportunity has already passed.
Changes to personal taxation are also influencing decisions for owner-led practices.
The Autumn Budget’s two-point rise in dividend tax reduces the net income available to directors extracting profits, while other cost changes have made ownership less tax-efficient than before.
Combined with higher operating expenses, this is leading some practitioners to consider whether to invest heavily for growth or exit while demand remains favourable.
Joshua Catlett, founder of Verilo, says timing has become more critical as the sector evolves.
“We’re at a point where private healthcare is evolving fast. Practices that are positioning for growth are investing in technology, automation, and AI, expanding into multidisciplinary models and upgrading facilities. That takes capital. It’s becoming harder for small independents to keep pace without meaningfully increasing investment.”
The expansion of consolidators and private equity-backed buyers is accelerating this trend.
These organisations are committing significant funds to premises, staffing, branding and systems, raising competitive expectations for independent practices.
Verilo observes that while such groups can be strong purchasers, they also intensify market competition.
Catlett says this is reshaping exit planning.
“In the past, waiting another year often meant stronger trading and a higher valuation. Today, owners are weighing the cost of investing for future growth against the option of exiting while their practice is strong and demand is high. A planned sale can give them more control, buyer choice, and a cleaner negotiation.”
The firm is also seeing more deals where owners sell but remain in clinical roles, allowing larger operators to provide investment and infrastructure for expansion.
Catlett views this as a sign of sector development rather than decline.
“Private healthcare is professionalising. Owners now have viable options to exit on strength, rather than waiting until the business needs major investment or faces strategic pressure.”
