Healthcare / Wellness Search
October 22, 2024
by a searcher from Pepperdine University - Graziadio School of Business and Management in Los Angeles, CA, USA
The search sweet spot being an EV of $10m to $30m with EBITDA of $2.5m to $7.5m. Ideally the company stakeholders are seeking retirement or have a desire to divest. I have targeted key regions where I have past work experience and possess solid track records in the Health space (California, Arizona, Texas, Florida, Illinois and New York). However, I remain open to opportunities both outside of the direct space and geographies.
from University of Virginia in Durham, NC, USA
One interesting space that I see is single provider or two provider medical practices with owners retiring. A lot of PEs won't touch these deals because they want to scale quickly and not deal with the messiness of finding a new provider. Many physicians are risk averse and don't want to take the risk of purchase and having to manage the business. Many of these deals simply don't get done and practices close up shop, and then the other local providers or hospitals just pick up the patients. If the deals do get done, they are typically at low valuations. If you can get smart on sourcing provider talent, I think there is a lot of opportunity here that both creates upside for retiring physicians that otherwise wouldn't sell and creates opportunity for new providers to gain some ownership without taking too much risk. And you can build yourself a nice business in the process.
from University of Toronto in Toronto, ON, Canada
I've been an owner, operator and consultant in the healthcare world for 14 years. I'm currently providing acquisition advisory services to a healthcare ETA buyer that initially suffered from search issues like yours. Over the last 4 months, we've narrowed their search from 6 potential verticals to one, from 4 possible states to 1, and cut their size range in half so we can now project capital requirements and funding sources with accuracy.
If you want to shorten the time frame and increase the probability of success of your search, I can provide you with direction, process, strategic planning, target identification and evaluation, LOI preparation, due diligence, negotiation and execution support. Looking forward to working with you on your healthcare acquisition journey!
^redacted, thanks for including me.]