There are two types of parties interested in partnering with a physician practice: strategic entities and financial entities:
Strategic entities are ambulatory surgery centers, hospitals and health systems, and other physician practice groups.These groups are typically looking to partner with (including acquiring) practices as a means of expanding their network and improving patient access, referral, and retention; providing ancillary services; increasing specialties provided; gaining size and negotiation advantage against the government and payors; and enhancing their competitive standing.
Financial entities are typically PE sponsors that are backed by significant capital resources. PE sponsors can use their operational and financial resources as well as growth-oriented expertise to consolidate operations, implement back-end efficiencies, and allocate resources towards new services, technologies, or offerings that improve the patient experience.
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.