Notes from recent closings: transition periods are getting longer

Across recent practice transitions, one term has changed more than any other: the length of time the selling clinician stays involved. Twelve to twenty-four month transition periods, once reserved for the largest deals, are now common even in single-location transactions.

The logic is straightforward. Referral relationships, payer contracts, and patient trust all transfer through the founder. Buyers have learned that paying for a longer, structured handoff is cheaper than watching revenue leak during a short one.

For sellers, longer transitions are not purely a concession. They are frequently tied to earn-outs or retained equity that can meaningfully increase total proceeds — and they give owners more control over how their team and patients experience the change.

Limneo perspective: decide your ideal transition period before you list, and state it in your sale terms. Buyers read it as a signal of confidence, not reluctance.