Executing Tuck-in Transactions After the COVID-19 Pandemic
As the bulk of the healthcare industry is focused on responding to the Coronavirus and COVID-19 pandemic, it’s inevitable that many medical practices will face economic loss and financial duress. It’s expected that distressed transactions and investing will continue even months after the crisis slows down.
In this episode of Across the Table, hosts Holly Buckley and Geoff Cockrell talk to Bart Walker, a partner in the healthcare group from the McGuireWoods’ Charlotte office. He dives deep into what tuck-in transactions are and what they entail for both the buyer and the seller.
Walker gives insights into what tuck-ins to avoid and what factors acquirers and sellers should watch out for when looking in the market, like regulatory issues. He provides tips on how platforms can rework their existing processes and systems to accommodate these types of acquisitions and the type of due diligence that needs to be done.
Although it may be a difficult situation, struggling practices have the opportunity to seek financial stability through this type of asset purchase, the tuck-in acquisition.
Overview on tuck-in transactions 01:28
How to scale down the process 05:01
Dealing with acquisition rates 07:11
Creating the sales pitch to a physician 08:21
Effect of the pandemic on small practices 08:48
Building a pipeline for tuck-in transactions 10:13
Advice for acquirers 11:01
Tuck-ins to avoid 12:41
Doing effective due diligence 14:41
What sellers should look for in a potential partner 16:28
3- to 6-month transaction flow forecast 18:01
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