BUCKINGHAMSHIRE, UK. March 2nd 2026 – Many UK medical practice owners hope to time the market when planning an exit. But according to specialist healthcare brokerage Verilo, waiting too long can lead to hidden costs that ultimately weaken valuations and reduce strategic options for owners.
While private healthcare demand continues to rise, the broader business environment is becoming more challenging.
The ONS reported 63,205 business closures in the UK during Quarter 3 of 2025, against 73,450 new creations.
Insolvency Service data shows company insolvencies rose 15% year-on-year in May 2025, sitting slightly higher than 2024 and close to levels seen during 2023’s 30-year peak.
According to Verilo, the hidden costs of waiting to sell are rarely obvious at first.
A practice owner reviewing this year’s figures may see stable revenue and consistent patient numbers, with little to suggest any urgency to act.
But maintaining that performance often requires absorbing higher operating costs or increasing reinvestment to meet rising expectations. Over time, the cumulative effect becomes harder to ignore.
Margins gradually compress, capital requirements grow, and owners find themselves working harder to stand still.
By the time the deterioration becomes visible in the numbers, it may already have narrowed the pool of willing buyers and weakened negotiating leverage.
Healthcare remains a resilient sector, but waiting until a problem is obvious often means waiting too long.
For many owner-operated practices, the personal tax environment is also shifting.
The Autumn Budget introduced a two-point increase to dividend tax rates, reducing the net benefit of extracting profits as personal income for owner-operators.
When combined with rising operating costs and less favourable treatment of vehicles and expenses, holding the business may not be as financially viable as it once was.
This is prompting some owners to reassess whether to reinvest for growth or exit while valuations are supported by high demand.
Joshua Catlett, founder of Verilo, says timing has become more important as private healthcare undergoes significant change.
“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 rise of consolidators and private equity-backed trade buyers is accelerating this shift.
These groups are deploying substantial budgets into facilities, recruitment, brand, and operating systems, raising the competitive bar for smaller, owner-operated practices.
According to Verilo, these consolidators can make strong acquirers, but they also represent growing competition.
Catlett says this is changing the way owners think about timing.
“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.”
Verilo nods to a growing number of owners selling while retaining clinical roles post-sale, allowing specialist operators to provide the capital and infrastructure needed to scale.
Catlett sees the shift as part of the sector’s maturation, rather than a sign of distress.
“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.”
ENDS