Introduction
Dr. N successfully established his medical practice by investing time and effort in a start-up model, all while holding a full-time position at another doctor’s office. But, due to a non-compete agreement, he couldn’t offer certain medical services at his new practice. Facing unexpected challenges in a competitive local landscape, Dr. N decided to set up a second practice nearly an hour away from the initial location. This move allowed him to offer the desired level of care to his patients and have more financial success.
As expected, Dr. N’s responsibilities grew when he became a two-practice owner, but the routine stressors of business operations were magnified by the COVID-19 pandemic. At the same time, feeling pressure to adapt to the demands of the medical landscape, Dr. N introduced pain management procedures. As the complexities and challenges of his practices grew, the pandemic pushed Dr. N to evaluate the sustainability of his work.
Dr. N decided to explore the possibility of merging with another medical group. He used the medical valuation calculator on the Practice Transitions Group website, leading to a near-immediate introduction to Taylor Fyfe.
Challenge
Dr. N told Taylor in their first conversations that he was a risk-averse business owner and preferred simplicity. His outlook was reflected in the outdated practice infrastructure, an antiquated Electronic Medical Records (EMR) system, and aging equipment he’d acquired years ago.
However, leveraging his extensive network and experience, Taylor addressed this challenge head-on. He empathized with Dr. N’s anxiety around an acquisition as the process is emotional for every seller. Taylor also ensured that Dr. N felt comfortable by keeping him apprised of each step and the next step. On top of everything, PTG marketed the practice in a way that was honest about its outdated equipment yet focused on its incredible profitability. In short, Taylor painted the picture of how Dr. N’s practice would be a strategic and reasonable acquisition for a buyer.
Our Approach
Taylor established quick connections with buyers, which was made possible because, before PTG, he’d spent decades overseeing the acquisitions of pain practices while consulting for a prominent pain management group in Texas. This experience allowed Taylor to interact with high-profile, private equity-backed groups. While getting advice on approaching potential buyers for Dr. N’s deal, Taylor contacted these individuals one at a time and, based on their input, chose to list the practice publicly.
Roadblocks
Throughout the process, PTG attracted four interested buyers, resulting in two substantial offers. During this phase, another Dallas-based doctor expressed interest in acquiring assets and offering compensation in salary for three years. Recognizing the inherent risks for the seller in this proposition, Taylor suggested Dr. N decline that particular offer. He spent hours in conversations with Dr. N and knew what he wanted. Taylor urged him not to rush and to wait for the ideal buyer.
Solution
The two other interested parties were strong buyers willing to make above-market offers. One in particular provided the perfect mix of stability and risk. Connecting with the doctor who eventually bought the practice turned out to be crucial; trust was built quickly. Ultimately, Taylor navigated a successful sale of Dr. N’s practice in just three weeks after the LOI was signed.
Results
Taylor demonstrated his expertise in managing the closing of a deal that not only met the needs of Dr. N but also exceeded his expectations. In addition, the speed of the transition notably reduced Dr. N’s stress from managing multiple practices and created a more balanced and harmonious professional environment.
Taylor’s strategic thinking went beyond the financial goals Dr. N set. Recognizing the importance of patient convenience, Taylor identified a buyer with already existing locations near Dr. N’s current offices, effectively minimizing patient inconvenience and contributing to the success of the multi-location sale.
Dr. N’s testimonial emphasized Taylor’s guidance and patience throughout the process. Taylor’s approach, along with his ability to streamline communication and decision-making, was instrumental in achieving a stress-free transition for his client.