9 questions you need to ask before selling to a private equity firm
Here are some questions to ask before accepting the check.
Private equity’s interest in buying medical practices is increasing, but experts say there are a lot of questions to ask before accepting the check.Here are 9 topics to discuss with a potential buyer.
Who will be in charge of the new company and how much input will doctors have in the decision-making?
If the private equity firm sells the practice, how much say will the doctors have in the new sale?
How much autonomy will physicians have in regards to clinical decision-making in the new organization? (This may be limited by state law.)
What is the buyer’s track record of returns on investment for the firm with similar deals?
If physicians want to leave the new company, what do they have to do and what limitations will they have to face in terms of a noncompete agreement or the like?
How will the private equity firm add value to the practice?
How long do they typically hold the practice before selling it?
What does success look like to the private equity firm?
How much of a pay cut will physicians have to take in the new company?