What is a Private Equity Firm?

Private equity firms are making a huge splash in the healthcare industry. Despite the extent of disruption caused by the pandemic, investors are paying top dollar for multi-office practices.

Since 2014, consolidation has been gaining momentum in the field of aesthetics, and right now, investors are buying plastic surgery offices like never before.

As an owner of a large plastic surgery practice, it’s best to understand private equity as a possible source of capital and as a prospective owner of the local competition.

Answers to the Top Questions Large Plastic Surgery Practice Owners Ask

What Is a Private Equity and How Does It Work?

Also known as a private equity (PE) fund, a private equity firm refers to a pool of money that’s looking to invest in or purchase existing practices. PE firms generally raise funds from limited partners (LPs) that may include wealthy individuals, pension funds, university endowments, capital from other businesses, and investments that exclusively invest in other funds.

In most cases, PE firms aim to dominate a market by combining multiple practices of the same type or creating a large multispecialty practice. Furthermore, these entities are always on the lookout for a platform practice that has proven itself to be successful in its specialty and in the market. PE firms target high-quality practices that usually have more than 10 physicians and multiple sites and at least $2 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).

What Are the Benefits of Joining with the Right PE Partner?

A practice that decides to partner with a PE firm will have access to substantial financial capital. Besides helping them eliminate some of their debt, PE investors can also create favorable tax ramifications for the money that comes to these practice owners.

This can be a major advantage to those who are looking to grow their practice, purchase new equipment, take administrative tasks off their plate, and mitigate risks regardless of market disruptions.

How Can I Find the Right Investors Who Are Interested in Buying Plastic Surgery Offices?

It’s important to note that strategic alignment is more than just reaping the benefits of a PE-backed exit or growth strategy to relieve you of day-to-day backend operations and increase shareholder value.

When your plastic surgery practice joins with the right PE partner, you align with healthcare innovators who have your best interests at heart. In this scenario, you’ll capitalize on your practice's planned growth within a definitive time frame and choose the terms.

To make this possible, you’ll have to engage a knowledgeable and well-connected M&A advisor—Viper Partners — to negotiate for you. It’s our job to ensure that you’ll end up with an investor partner who allows your practice to scale up to new procedures or geographies while bringing C-suite business savvy to the table.

While making sure that your practice benefits from economies of scale and bargaining power, our team will also craft a smart deal structure on your behalf. This includes initial cash payouts, equity, and bonus structures. Furthermore, you’ll make 100% of clinical and key business decisions, your organizational culture and brand equity will stick, and your key employees will stay.

In a nutshell, you can count on Viper Equity Partners to keep your interests at the forefront as we get you the biggest offers and the best deals.

Contact us today to learn more about what we can do for you and your plastic surgery practice.