Should Search Funds Buy Healthcare Practices? A Deep Dive with Scott Becker

Healthcare is consistently among the most common industries targeted by Search Funds. Though there are countless sub-verticals within healthcare, today’s episode focuses specifically on the merits and risks of acquiring healthcare providers themselves. It’s no secret that this has been a popular investment thesis among private equity firms over the past decade, particularly among those pursuing consolidation strategies. Popular targets have included dental, OB/GYN, GI, and orthodontic practices, among others. On one hand, this makes sense: These are highly fragmented industries offering many potential acquisition targets. The businesses themselves tend to be profitable and recession-resilient, and the customer’s purchase decision is often non-discretionary in nature. However, investing in such businesses doesn’t come without risks. These often include payor risk (Medicare, Medicaid, or concentration with a small number of commercial payors), physician concentration risk (a small number of doctors accounting for a disproportionate share of total billings), clinical risk (e.g., will a given procedure or treatment remain the clinical standard several years from now?), and recruitment/retention risk, among others. To help us unpack these ideas, I was thrilled to be joined this week by Scott Becker. Scott is a partner in the healthcare group at McGuireWoods, a full-service U.S. law firm that serves clients ranging from startups to Fortune 500 companies. He previously served on the firm’s Board of Partners and chaired the Healthcare group for nearly 13 years. He provides counsel to hospitals, ambulatory surgery centers, pharmaceutical companies, single- and multi-specialty medical practices, private equity firms, and a variety of other healthcare entrepreneurs. I hope you find this episode informative and useful. Link to the episode: https://mineolasearchpartners.com/2025/07/17/should-search-funds-buy-healthcare-practices-a-deep-dive-with-scott-becker/