When considering a private equity partner for your physician practice group, there are several factors to consider that are just as important as the economics of the deal. To ensure a successful working relationship after the deal is done, it’s imperative to identify not only the right cultural fit for your practice but to ensure the partner possesses relevant industry experience.
On this episode of Across the Table, McGuireWoods partners and hosts Holly Buckley and Amber Walsh are joined by Michael Kroin, co-founder and managing partner of Physician Growth Partners. Physician Growth Partners is a healthcare transaction advising firm focused on representing founder-owned single-specialty physician platforms in private equity transactions.
Michael reveals how the unique circumstances of 2020 shaped the deal market. While the year started off strong, with significant momentum coming out of 2019, the pandemic saw the M&A market for physician practice deals began to fall. However, over the summer months, Michael and his team were able to deploy creative techniques to get pending deals across the finish line.
Michael notes that what we’re currently witnessing in the deal market is a very positive outcome. Deal volumes are strikingly similar to pre-COVID numbers, which “gives us all the indications that there’s still an interest to go down the private equity route. Sellers still have a willingness to ultimately complete a transaction and find the right partner that could help them achieve their goals and succession plans.” (4:41)
Highlights from the episode:
Background on Michael Kroin & Physician Growth Partners (1:25)
How 2020 shaped the deal market (2:44)
Physician Growth Partners’ process for counseling buyers based on their unique objectives (5:25)
The divergent effects of the 2020 market on distinct transaction types (8:54)
Sectors receiving the most attention in the waning days of 2020 (12:08)
Finding the right cultural fit for physician groups and preparing them for the sale (14:27)
Michael’s key observations for 2021 (16:56)
We appreciate you joining us on this episode of Across the Table. To learn more about today’s discussion or to contact us, please visit our website at mcguirewoods.com. You can also visit physiciangrowthpartners.com for more information on Physician Growth Partners.
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