Private Equity Insights for Plastic Surgery Practice Owners
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.
FAQs for Large Plastic Surgery Practice Owners
What Is a Private Equity and How Does It Work?
A private equity firm, also known as a private equity (PE) fund, represents a pool of capital seeking investment opportunities in existing practices. Typically, PE firms raise funds from limited partners, including affluent individuals, pension funds, university endowments, and other businesses.
In most cases, PE firms aim to consolidate similar practices or establish a large multispecialty practice to dominate a specific market.
They target high-quality practices with over 10 physicians, multiple sites, and a minimum of $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 looking to grow their practice, purchase new equipment, take administrative tasks off their plate, and mitigate risks regardless of market disruptions.
Discovering the Ideal Investors for Acquiring 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.
Our team will ensure your practice benefits from economies of scale and bargaining power while crafting 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.