UK practice owners often hope that waiting will lead to improved trading and higher sale prices. Verilo, a specialist healthcare broker, cautions that delaying a transaction can introduce hidden financial pressures that ultimately reduce both value and choice.
Private healthcare activity continues to grow, but the wider business backdrop is becoming more demanding.
ONS statistics show 63,205 firms closed during Quarter 3 of 2025, while 73,450 new businesses were formed.
Insolvency Service figures reveal a 15% annual rise in company insolvencies in May 2025, placing levels above 2024 and close to the highs recorded in 2023.
According to Verilo, the cost of waiting is rarely obvious at first glance.
Many practices still report consistent income and patient demand, which can give the impression that there is no urgency to act.
However, sustaining that stability increasingly requires higher spending or ongoing reinvestment to meet rising operational standards. The effect accumulates gradually.
Margins tighten, capital commitments grow and owners must work harder to maintain existing performance.
By the time financial strain appears clearly in accounts, the buyer pool may have shrunk and bargaining power diminished.
Healthcare remains comparatively resilient, but leaving decisions until problems are visible can reduce strategic options.
Tax changes are also affecting owner-operators.
The Autumn Budget’s increase in dividend tax lowers take-home income, and adjustments to cost treatment mean retaining ownership may no longer deliver the same financial benefit.
With operating costs rising, some practitioners are reconsidering whether to invest further or sell while valuations remain supported.
Joshua Catlett, founder of Verilo, believes the pace of change in private healthcare is reshaping timing decisions.
“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 growing presence of consolidators and private equity-backed buyers is lifting competitive standards.
Their investment in infrastructure, recruitment and systems increases the pressure on smaller practices.
Verilo notes that these organisations can be attractive acquirers, but their scale also raises the threshold for remaining competitive.
Catlett says this is altering traditional thinking.
“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.”
An increasing number of transactions now allow clinicians to continue practising after the sale, with larger partners supplying capital and operational support.
Catlett regards this as evidence of a maturing market.
“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.”
