Video Summary

In this transcript from a video, attorney Andy Gale from Gale & Vallance, a law firm based in Orange County, California, explains the legal considerations and strategic options available when selling a chiropractic practice in California. The video outlines who can legally own a chiropractic corporation, the restrictions involved when dealing with non-chiropractic buyers like private equity firms, and how tools like a Management Service Organization (MSO) can help navigate these limitations.

To learn more about how to sell a chiropractic practice in California and avoid legal complications, check out our detailed article on navigating chiropractic business sales under California law.

This video is for informational purposes only and does not constitute legal advice. If you’re considering selling your chiropractic business, we strongly recommend you consult with a qualified attorney to assess your specific situation.

00:00 – Introduction by Attorney Andy Gale

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Hi, I’m Andrew Gale, an attorney specializing in helping chiropractors navigate the legal complexities of running and selling their businesses here in California.

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Today I want to tackle a question I hear all the time: What happens if I want to sell my chiropractic corporation?

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Recently, Mark Jones, a practicing chiropractor, reached out with a common but complex question:

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If we set up a chiropractic corporation and decide to sell the business a few years down the road, would it cause complications to sell to a non-chiropractic entity?

00:00:46 – Legal Restrictions When Selling a Chiropractic Corporation

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The short answer in general is no, so long as you’re open to applying a creative solution.

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Selling a chiropractic corporation in California presents unique challenges because of strict state regulations on who can own and operate these businesses.

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If you’re considering selling your practice to a private equity firm or a broader group of buyers, it’s critical to understand these restrictions and plan ahead to avoid potential roadblocks.

00:01:16 – Ownership Rules in California

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Chiropractic corporations in California are different from other businesses because they’re governed by strict ownership rules.

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Licensed chiropractors must own at least 51% of the corporation, while the remaining 49% can be owned by other licensed professionals like doctors or psychologists.

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But here’s the catch: non-chiropractic entities like private equity firms cannot own any shares at all.

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So if you’re hoping to sell your practice to a broader market, these restrictions can feel like a major roadblock.

00:01:56 – Using an MSO to Work Around Restrictions

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With the right strategy, you can still achieve your goals.

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One way to work around these restrictions is by creating what’s called a Management Service Organization, or MSO.

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An MSO takes over the administrative and operational side of your practice—things like billing and HR—while the chiropractic corporation remains responsible for providing care.

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This setup allows private equity firms to invest in the MSO instead of the chiropractic corporation itself.

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It’s a creative solution that stays compliant with California law while making your business more attractive to buyers.

00:02:36 – Final Advice: Start Planning Early

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Here’s the key takeaway: If you’re even thinking about selling your chiropractic corporation, start planning now.

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The earlier you consult with legal and financial professionals, the easier it is to structure your business for a smooth sale and avoid unexpected hurdles.

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By planning ahead, you can ensure your business is compliant, flexible, and appealing to the right buyers—whether that’s other chiropractors or private investors through an MSO.

00:03:08 – Legal Support from Gale & Vallance

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At the Law Offices of Gale & Vallance, we specialize in guiding chiropractors through these challenges.

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Whether you’re setting up your corporation or preparing for sale, we’re here to help.

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Contact us today to get started on securing the future of your business.

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Thanks for watching, and I look forward to working with you.

Conclusion: Selling Your Chiropractic Practice in California

Selling a chiropractic practice in California requires careful legal structuring and strategic planning, especially when selling to non-chiropractic entities. From understanding the 51% ownership rule to using an MSO for compliance, it’s important to know your options. Andy Gale and the team at Gale & Vallance are ready to guide you every step of the way. Reach out today for a personalized legal consultation—and make your practice transition as smooth and successful as possible.