At the Becker's ASC 21st Annual Meeting — The Business and Operations of ASCs, Oct. 23 to 25, in Chicago, Scott Becker, JD, CPA, chairman, McGuireWoods' healthcare department and publisher, Becker's Healthcare; and Amber McGraw Walsh, JD, partner, McGuireWoods, laid out tips for ambulatory surgery centers looking to sell and discussed negotiation strategies.
"Start with an assessment," said Mr. Becker. "Really know your center before making the decision to sell."
According to Mr. Becker, ASCs wondering whether or not to sell should consider the following:
• Figure out whether your income is going up or down and determine if your income is sustainable.
• Consider the size of the ASC; is it too dependent on a few physicians? Could losing a few physicians could change the future of your organization?
• Analyze your reimbursement and see whether it will be at risk.
• Consider your own retirement timeline — if you decide to sell its unlikely you would put that money back into something as risky or potentially profitable as an ASC.
"After looking into the relevant factors, if you do decide to sell, make it as fruitful a process as possible," said Ms. Walsh.
Ms. Walsh offered the following tips for ASCs when negotiating with the buyer:
• Negotiations will most likely get adversarial because both sides are trying to get the best deal.
• Do a self-assessment and get any skeletons out of the closet early on.
• Expect hiccups along the way but do your best to avoid them. Reach out to third parties early and looking into regulatory processes.
• Select a team member involved in the transaction and bring them onboard early in the process.