A declining pool of internal successors is steering many UK private medical practices towards external buyers, according to specialist brokerage Verilo, as senior clinicians near retirement and younger professionals show less interest in ownership.
Verilo reports that the once-standard route of selling to an associate or partner is now uncommon across much of the private healthcare sector.
The brokerage attributes the change to a combination of financial pressures, shifting workforce demographics and the increasing complexity of running a practice, with funding requirements emerging as the main obstacle for potential internal buyers.
Evidence from a Nuffield Trust paper shows that GP partners aged 40 and under fell by 53% between September 2015 and December 2024.
The only cohort showing growth is practitioners aged over 60.
Although total partner numbers continue to rise, the supply of younger clinicians prepared or able to invest in ownership is diminishing, while interest from professional purchasers is increasing.
Joshua Catlett, Verilo founder, says the pattern extends beyond general practice.
He notes that private medical and allied health clinics face the same dynamics: ageing proprietors, increasing patient demand and a widening successor gap as younger clinicians prioritise financial stability and lifestyle considerations.
“Younger clinicians increasingly see the risk-reward imbalance of ownership. For most associates, the same savings that would once have funded a buy-in now go towards mortgage deposits and family life. Borrowing has also tightened, with traditional lenders less willing to finance practice acquisitions without substantial personal capital. The internal buyout model simply no longer scales.”
With fewer internal options available, many owners are delaying retirement or turning to third-party buyers.
Catlett explains that this has led to a more structured and professionalised exit market where external transactions are often viewed as more secure.
“When an internal sale goes wrong, it’s highly emotional, and it can weaken the practice if the associate leaves. Owners are increasingly recognising that a well-run external sale creates competitive tension, clearer timelines, and the ability to benchmark value objectively. It protects continuity for patients and staff and avoids personal fallout.”
Verilo has observed a marked rise in practices seeking formal valuations and preparing structured exit strategies, replacing informal succession discussions with planned sale processes.
Catlett says the range of potential purchasers is also expanding.
“External transactions were once viewed as an option only for larger, corporate-style medical groups. What we’re now seeing is increasing demand from external buyers who are specifically looking to take over owner-operated and partner-run practices, as well as multi-site groups. For owners, that opens up more choice, more competitive tension, and a clearer sense of value without relying on a single internal successor.”
As traditional handovers become less viable, the gap between expectations and realistic exit routes is widening, making early planning increasingly important for practice owners.
