Blog


Sharing an Apple

A key, but complicated, part of most investors deals is the portion of the value that the selling practice takes in future equity instead of cash at closing.  

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The Second Sale

Most private equity investors acquire companies with the objective of selling them again in a relatively short time frame and once the original owners sell, they have little say in the second transaction.

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The Frost Fork

Understanding what has to happen for an outside investor to later resell your practice for the desired return on their investment will help physicians better understand how the investor will approach the business and relationship after the initial sale.

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Eye of the Beholder

With the new HHS secretary committing to a review of the ban on physician-owned hospitals, an old battle between doctors and hospitals may be reopened.

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Barney’s Bullet

Practices whose economic value rests on surgeries or other procedures may find it difficult to engineer a private equity buy-out if they have tied up the value of those procedures in an existing surgery center deal.

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The Scrape

Physicians selling their practice generally must agree to take less in annual salary in order to create profit for the practice.  This issue alone brings a lot of difficult challenges that must be navigated.

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Card Trick

In order to create the necessary EBITDA to be given an attractive value by private equity investors, many physicians would have to take a material pay cut, a prospect that does not work in many situations.

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Fun with Accounting

Private equity funds generally value businesses, including physician practices, based on EBITDA, the measure of operating profit.  Understanding how this all works is important before considering selling your practice to an equity investor.

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The Press Release that Ate Manhattan 

An announced joint venture by three large companies to disrupt healthcare sends the stock of many companies reeling.

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A Rash of Rashes

There are now approximately 30 companies focused on consolidating dermatology physicians in one way or another, a powerful dynamic that is sweeping through the specialty.

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ALN

Tim Coan, ALN’s CEO, writes an insightful and witty blog three times a week about a variety of topics relevant to independent physician practices.

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