Physician Decision Tools

Practice Acquisition Financing

Know what the deal will demand—before it owns your options.

Model the payment changes, balloon exposure, refinance dependency, cash requirement, and operating pressure behind a practice acquisition—in one physician-first decision summary.

Start with the purchase details.

Use the numbers from the offer, purchase agreement, lender term sheet, or seller proposal. Estimates are fine—you can revise them instantly.

State where the practice is located ?

Main medical specialty

Agreed purchase price

Cash you will pay toward the purchase at closing

Estimated transaction and closing costs ?

Cash reserved to operate after closing ?

Total cash you can use for the purchase

Estimated monthly practice expenses

Exclude loan payments; include payroll and normal operating expenses.

iWhy location matters but does not change the payment: the loan calculation is the same in every state. State-specific ownership rules, taxes, licensing, payer transfers, and closing requirements must be reviewed separately during due diligence.

Enter the payment plan exactly as it is written.

The tool can model seller financing, payment-free months, introductory rates, principal-only payments, later rate changes, balloon payments, and refinancing.

Months before payments begin

mo.

What happens to interest before payments begin?

Month the introductory terms end ?

mo.

Interest rate during the introductory period

How payments work during the introductory period

Principal paid each month during the introductory period

Interest rate after the introductory period

Years used to calculate the later payments ?

yr.

Month the remaining seller balance becomes due ?

mo.

Expected refinance

If you expect a bank or SBA loan to replace the seller financing, enter the best terms currently available to you. An actual lender quote is more reliable than a general market rate.

Month you expect to refinance

mo.

Expected refinance interest rate

Years to repay the refinanced loan

yr.

Lender fees added to the new loan

Other refinance costs

Pressure-test the practice, not just the loan.

Start with what the practice actually collected and the cash it produced during the last 12 months. Then test whether the payments still work if performance declines.

Expected/Known Collections in last 12 months ?

Annual cash remaining to make loan payments ?

Test the deal if collections and cash flow fall by

Required cash-flow cushion above loan payments ?

Number of providers at closing

Number of people who need SummitOS and technology access

Monthly cost of comparable business support ?

Optional. Enter your own estimate or quotes; the tool will not manufacture a savings claim.

Where the practice’s collected revenue comes from

Estimate the percentage of money actually collected from each payer group during the last 12 months. The five entries must total 100%.

Commercial

Medicare

Medicaid

Self-pay / cash

Other

Payer mix total100%

One last look before the math runs.

Confirm the assumptions that will drive the decision summary. You can return to any section and update the analysis.

Your financing decision summary

A workable structure—with pressure points to solve before closing.

Your results are based entirely on the assumptions entered above.

--Readiness signal

CalculatingThis is a planning signal—not a lender decision, valuation opinion, or probability of success.

Cash required at close$0Including down payment, closing and working capital

Balance at refinance$0Before financed refinance fees

Refinance payment$0Estimated monthly principal and interest

Payment cushion after the decline tested0.00xCompared with the cushion you require

Two financing paths

Compare keeping the seller financing until the remaining balance is due with refinancing in your selected month.

Actual-input analysis

Path A

Keep the seller financing

Monthly payment after introductory terms—

Total annual loan payments—

Balloon balance—

Cash-flow coverage—

Interest through balloon—

Path B

Refinance at selected month

New loan amount incl. financed fees—

Monthly payment—

Total annual loan payments—

Cash-flow coverage—

Total interest, seller + refinance—

Balance trajectory

How quickly principal falls—and how much balance still depends on a future capital event.

Seller note Refinance pathway

Payment timeline

Same-payment months are grouped so the transition points are easy to see.

Phase	Months	Monthly payment	Rate	Ending balance

What deserves attention before you sign

Decision prompts generated from the pressure points in your scenario.

The financing is only one operating system

You modeled the note. Now account for everything required to make the practice perform.

MedCBO brings executive operations, finance and accounting, HR, compliance, technology administration, marketing administration, credentialing, revenue-cycle oversight, and practice infrastructure into one coordinated model.

Administrative services start at the greater of $5,000/month or the applicable Gross Collected Revenue tier. Technology access, implementation, direct vendor and pass-through costs are separate.

— Estimated ongoing monthly MedCBO administrative + technology access fees

First-year launch fee—

First-year MedCBO fees—

Your entered comparable costNot entered

Calculated monthly differenceAdd your estimate

Optional next step

Have MedCBO review the operating assumptions behind this deal.

Receive a focused discussion of the financing pressure points, transition runway, infrastructure needs, and questions your advisors or lender should answer before closing.

No patient information. Do not submit PHI or confidential seller data through this form.

Your calculation is complete. Continue to MedCBO’s secure contact page to request a review; your inputs will not be transmitted unless the HubSpot form integration is configured.

Request a MedCBO review

Important: This educational planning tool provides mathematical illustrations based solely on user-entered assumptions. It is not a valuation, fairness opinion, lender underwriting decision, financing commitment, legal or tax opinion, reimbursement estimate, CPOM analysis, or prediction of future performance. Payer mix alone cannot determine revenue or collections. Results do not account for every lender requirement, tax, legal structure, purchase-price allocation, working-capital adjustment, payer contract, credentialing delay, claim runout, integration cost, or transaction term. Obtain transaction-specific advice from qualified legal, tax, accounting, valuation, insurance, financing, payer, and regulatory professionals. MedCBO services, availability, scope, and pricing are governed only by a fully executed agreement and applicable SOW. Direct vendor, RCM, software, filing, insurance, and other pass-through expenses may be separate.