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Business Advisor: Three Keys to Selling a Physician Practice
Focus on optimizing the price and ensuring a smooth transaction.
Jerry J. Sokol, JD
Publish Date: April 11, 2022   |  Tags:   Business Advisor Financial Management
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CLOSE THE DEAL Hiring investment banking and healthcare counsel specialists can get your sale to the finish line with the best price and a minimum of snags.

Large health systems, physician practice management companies (PPMs) and private equity firms are buying physician practices in waves across the country. This rolling up of practices that own ASCs was big business in the 1990s, and now it’s happening again. Sales of practices have been occurring in an increasing number of specialties, including orthopedics, ophthalmology, GI, urology, OB/GYN and cardiology — all of which perform procedures in same-day surgical settings. Physician owners of surgery centers must position their biggest investment in a way that maximizes the purchase price and ensures a smooth transaction. 

Hire competent advisors
The selling of a practice and surgery center could be the most important transaction of a physician’s life, so they shouldn’t entrust it to their friend who’s a divorce lawyer or a real estate attorney. Physicians make that mistake all the time, trusting a close friend instead of an attorney who specialize in this kind of transaction.

They should also align themselves with experienced advisors, the most important of which is a healthcare investment banker who specializes in physician practice sales. This expert can develop a confidential information memorandum (CIM), which is essentially a small book about the business performance of the practice, including financial data and projections that potential buyers would want to see. The investment banker and an experienced healthcare transaction attorney will use the CIM to shop for the best deal. 

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