When a DSO, MSO, or private equity group makes a direct offer to purchase your practice, it can be tempting to move forward without representation. After all, why pay an advisor when you already have an interested buyer? Here's what experienced practice owners understand about maximizing value in today's market.
Understanding True Market Value
The healthcare practice market is more complex and dynamic than ever. While a direct offer might look attractive on the surface, how does it compare to what other buyers would pay? Remember: buyers approaching you directly are incentivized to purchase at a discounted price.
Beyond the Initial Offer
What appears straightforward at first often becomes more complicated during due diligence. Initial offers frequently get reduced during underwriting, deal terms can limit long-term value, and unexpected post-closing obligations may emerge. Without representation, you'll have limited negotiating leverage and might miss opportunities for better deal structures.
The Value of Expert Representation
Working with an M&A advisor maximizes your outcome through deep market knowledge and professional leverage. Your advisor handles the complex transaction details while you focus on maintaining practice performance. Their experience helps protect against common pitfalls that can reduce value or derail deals. Most importantly, creating competitive tension among multiple interested buyers often leads to better terms.
Key Benefits of Professional Representation
Your investment in professional representation typically delivers:
- Higher purchase prices through competitive processes
- Better deal structures protecting long-term value
- Reduced risk of price reductions during diligence
- Time savings and maintained practice performance
- Protection of key priorities beyond just price
- Clear timeline management and milestone tracking
- Expert guidance through complex negotiations
- Protection against common transaction pitfalls
Making Your Decision
Consider your priorities beyond just the purchase price. Are you confident you can navigate complex deal terms, manage due diligence, and negotiate optimal outcomes while running your practice? Would creating competitive tension lead to better terms?
At PTG, we specialize in helping practice owners achieve exceptional results through professionally managed processes. Contact us to discuss your specific situation and how we might help you maximize value in your transaction.
