Preparation
Develop a strategy
Define your end goal of an M&A transaction and collect the necessary documentation including financial data that will be key in creating a compelling story for your practice.
Identify target partners
Compile a list of potential partners and begin outreach to these individuals. These potential partners are typically investors that have a history of investing in similar businesses or have an explicit interest in pursuing a physician practice strategy.
Marketing
Contact buyers and deliver marketing materials
Interested potential partners will agree to a nondisclosure agreement (NDA), which will allow you to share key information about your business via a confidential information memorandum (CIM). A CIM is a detailed document that includes business overview, industry trends, operational data, growth opportunities, and detailed financial information (historical and projections).
Initial offers and diligence
Receive initial offers and negotiate terms
Host in-person meetings with buyers and on- site visits. Offers will be received and select companies will move on to the second round of offers.
Conduct due diligence
Potential buyers conduct research and analysis to ensure that they have a holistic understanding of the state of your practice, from financial statements to inventory, real estate, and patient information.
Final offer and closing
Negotiate final deal terms
Negotiate on areas that you and the buyer did not initially agree upon, and sign the purchase agreement.
Close 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.