A shortage of associates willing to purchase into private medical practices is prompting a shift towards external sales across the UK, says healthcare brokerage Verilo, as older owners approach retirement with fewer internal pathways available.
The firm indicates that internal buy-outs, once the conventional method of transferring ownership, are now rarely achievable.
Financial barriers, demographic change and the growing operational burden of practice management are identified as key factors, with limited access to capital proving the most significant challenge for prospective successors.
Data from the Nuffield Trust paper shows a 53% decline in GP partners aged 40 and under between September 2015 and December 2024.
Growth has occurred only among those aged over 60.
While overall partner numbers continue to increase, fewer younger clinicians are entering ownership, and professional investors are becoming more prominent.
Joshua Catlett, Verilo founder, states that the trend affects not only general practice but also private medical and allied health providers.
He highlights an ageing ownership base alongside rising patient demand and a workforce that increasingly prioritises financial security over equity stakes.
“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.”
As internal routes diminish, owners are either extending their tenure or pursuing external transactions.
Catlett suggests that structured third-party sales are now widely seen as a lower-risk alternative.
“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.”
The brokerage reports growing engagement from practices seeking formal valuations and organised exit planning, signalling a move away from informal succession discussions.
Catlett adds that the buyer landscape has diversified.
“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.”
With internal handovers becoming less feasible, early and structured preparation is becoming essential for owners planning their departure from practice ownership.
