Rivas Goldstein, LLP Call : 212-541-2451 | 800-758-3278

Private equity deals with healthcare practices break records

The healthcare industry broke private equity activity records in 2017. Becker’s Hospital Review reports six big deals that were announced just this month. They include everything from a physical therapy practice management company to a healthcare software company.

Becker’s notes these deals will likely continue to grow through 2018.

What is the draw? There are generally two types of clients: those who are struggling and could use the capital to get back on their feet or those who are already successful but looking to grow. Private practices, software companies or others in the healthcare industry that find themselves in one of these situations may look a number of places for capital to move forward.

Private equity is one option.

What are the benefits and risks of using a private equity firm? There are both pros and cons to going with a private equity firm. Some practices may benefit from the capital to help build their footprint in an area, perhaps using it to springboard deals bringing in other practices in the area. The funds could also be used to help purchase ancillary services like imaging centers or real estate.

What happens during these deals? If a practice or other healthcare business chooses to go with a private equity deal, it generally involves the private equity firm providing a multiple of earnings based on an equation that takes various factors into consideration. In exchange, the private equity firm receives a majority or minority share in the practice.

The practice will need to carefully consider the proposal to ensure it meets their goals.

Are there other options? A private equity deal is just one way to get capital to move your practice forward. Other options are available. An attorney experienced in the healthcare market can help with the process, including gaining funds, completing due diligence and drafting any needed documents.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Schedule A Consultation With An Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Austin Office
3345 Bee Cave Rd, Suite 104
Austin, TX 78746

Toll Free: 800-761-5190
Phone: 512-481-8000
Fax: 512-481-0022
Map & Directions

New York Office By Appointment Only
405 Lexington Ave 26th Floor
New York, NY 10174

Toll Free: 800-758-3278
Phone: 512-481-2916
Phone: 212-541-2451
New York Law Office Map

McAllen Office By Appointment Only
1100 East Jasmine Ave
Suite 105
McAllen, TX 78501

Phone: 512-481-8000
Map & Directions

Review Us