Practice Valuation

An economic comeback, conservative pricing, private equity: What does this mean for potential sellers of health care businesses?

New research highlights a sharp increase in physician departures following private equity acquisitions, raising concerns about workforce stability and patient care.

How to safeguard the benefits of private practice amid unique, high-stakes challenges.

The leader of the American Independent Medical Practice Association discusses the state of private equity investment in health care.

The leader of the American Independent Medical Practice Association discusses the state of private equity investment in health care.

Private equity investment or hospital ownership can offer management advantages. Yet doctors are opting for something else: autonomy.

Whether you're considering selling your practice, bringing in a partner, or preparing for retirement, having a clear and accurate valuation is essential for making informed decisions about your practice’s future.

What you need to know before making the sale

Here is some guidance for how practice owners can view their practices as outsiders and questions for physicians to ask as they contemplate joining a practice, especially as a future partner.

Many of these items should be addressed in advance of going to market or accepting indications of interest from potential buyers.

The right kind of ownership transition plan can mitigate challenges and ensure physician (and patient) retention and the best patient care.

Follow these steps to evaluate and conduct a PE transaction

A well-run and well-prepared practice can be very attractive to private equity investors

Physicians who have spent most of their working life building a practice often have no clue how much their business is worth. This lack of knowledge can affect retirement planning, create financial delays when applying for loans and allow inefficiencies to erode the overall value of the practice.

In today’s volatile healthcare market, smaller physician groups are looking to be acquired, while larger ones may want to expand their reach by making an acquisition. Best practices for both include increasing risk management practices and enlisting a competent insurance broker to help maximize the medical practice’s valuation.