How to Prepare Before, During, and After Selling to Private Equity or Corporate Buyers

Industry experts outline three main considerations.

After decades of hard work, you have built a practice worth selling. If selling a medical practice to private equity or corporate buyers is an option for you, congratulations on getting to this point in your career.

Here are three ways to prepare and help set expectations – before, during, and after the transaction: 

Before you begin, enlist professional representation.

Simply put, experience begets better results. Choose a broker who will use their knowledge and expertise to get a fair market value offer for your practice.

Our role as a broker is to:

  • Equip you with what we know about the industry’s landscape;
  • Represent you at the deal table and apply our negotiation skills so that you are represented in equal weight; and
  • Help construct aspects of the deal that may be lucrative sources of capital for you, such as in the form of rolled equity.

During the process, expect to offer detailed and substantial information.

Private equity and corporate buyers require a level of due diligence that includes a long list of specifications. Expect their data request lists to be lengthy and detailed.  

Our role as a broker is to:

  • Buffer and help sort through the inevitable pile-up of data requests you will receive; and
  • Lead you through the process of compiling and submitting the necessary information.

In preparation for after the sale, familiarize yourself with reporting.

Doctors who were once autonomous may need to submit to a new partner after the deal closes. This often includes new ways of reporting and documentation requirements. Doctors and buyers should review non-financial agreements before selling a medical practice, to avoid negative surprises.

Our role as a broker is to:

  • Raise the importance of negotiating non-financial agreements before signing off on a deal; and
  • Prep you with infrastructure tools for reporting based on our experience and understanding.

Summary

If you are planning to sell to private equity or corporate buyers, it is highly recommended that you enlist an experienced broker. Brokers act as both a knowledgeable sounding board and skilled advocate to increase your chances of landing a top deal. Their presence at your side will also help you navigate the complex process – before, during, and after. 

Morgan Burrell

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