As you transition from the role of a practice owner, clinician, and administrator to a role more focused on clinical care, your responsibilities and organizational structure may change. While every transaction is different, there are some common themes:
Compensation
Shareholders will receive a lump sum for the sale of the practice, retain some ownership in the new organization, and receive a market-based salary.
Responsibilities
Shareholders will be able to focus more on clinical care rather than operational and managerial administrative tasks.
Transition and culture
The ultimate buyer will augment existing staff and processes that are in place and leverage new strategies of their own to continue to grow the practice.
Given the changing healthcare marketplace, consolidation of physician practices is likely to continue. For practice owners, understanding your options and taking a preemptive position in the planning process can yield better results not only in terms of valuation, but also the qualitative aspects of a transaction.
Download PDF: Physician practice M&A
Physician practices are frequently being approached by private equity firms. This bring about many questions for practices owners regarding what’s next for their practice and how to maximize value as they prepare.
How we can help?
KPMG Corporate Finance LLC’s healthcare services investment banking team understands that the decision to pursue a strategic partnership is a significant decision. We guide physician practice stakeholders through each step of the process, from deciding whether to pursue a partnership, and understanding the value drivers to executing a transaction.
We’re able to answer questions and provide you with objective insights on how to efficiently execute a deal that aligns with your goals and objectives.We understand the healthcarelandscape and how to differentiate your practice. We offer actionable insights and guidance while managing the transaction from start to finish. Our decades of transaction experience allow us to navigate complex transactions, our pulse on the dynamics within the healthcare industry help us maximize value, and our relationships with private equity sponsors and strategic buyers are critical for getting your practice in front of more interested parties.
If you would like to begin a discussion around what your options for a strategic partnership could look like, and to better understand how to maximize value during the process, please contact a member of our team.