Selling a physician-owned practice: 5 factors to consider

Angie Stewart - Print  |

The number of physician-owned practices considering a sale has tripled in light of the COVID-19 pandemic, according to information gathered by Physicians First.

Physicians First's Eric Yetter shared five factors for prospective sellers to consider:

1. Demand for specialty medical services isn't going away, and investors are confident these businesses will recover.

2. Transactions vary based on the practice's circumstances and the purchaser's needs and wants.

3. Physicians First believes investors will adjust financial performance and valuation calculations in ways that account for COVID-19-related shutdowns.

4. Negotiations and contract agreements will be complicated by disruption to key operational measures and transaction elements.

5. A practice's post-shutdown recovery will be factored into valuations.

Click here for more information.

More articles on transactions/valuation:
Surgery Partners Q1 revenue up 5.8%, received $45M in CARES Act funding: 6 details
How COVID-19 has affected Tenet, HCA Healthcare and Surgery Partners' shares this week
Envision & ValueHealth grow through the COVID-19 pandemic & more — 10 ASC industry notes

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.