Six pros and cons:
Pros:
– Monetizing equity. When a private equity firm buys an ASC, it gives provides the opportunity to monetize equity.
– Opportunities to practice. Administrative changes taking place after a private equity firm buys an ASC means physicians’ day-to day activities may be more focused on performance.
– Bulk payments. ASC owners receiving an upfront payment for the sale of the practice can use the funds to help meet financial goals, like retirement.
Cons:
– Lower profits long term. When selling to a private equity firm, physicians and other owners sell a percentage of the profits as well.
– Loss of control. Once an ASC is sold to a private equity firm, the culture and success of the center can change.
– Brief partnerships. Private equity firm investments last for a short period of time, ending in a sale to another firm.
More articles on transactions and valuation:
Vascular Institute opens 2nd Tennessee-based outpatient clinic — 3 insights
Buyer pays $15.4M for Kansas ASC — 3 quick points
Surgery Partners Q1 same-facility revenue up 5%: 5 details
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