1. Have a diversified, predictable, growing revenue stream. Surgery centers should make sure they have a good mix of physicians on staff, not only in people but also age, according to Mr. Kennedy. “Buyers want to see that there is not just one or two surgeons who make or break the center,” he says.
Creating an attractive physician-dynamic is a long-term process that ASCs should start years prior to selling part of their centers, according to Mr. Kennedy. “You want your strong physicians to bring in junior partners, and you want to reach out to other up-and-comers in your area. This process requires long-term outreach and planning. You can’t just flip on a switch and have a good mix of physicians.”
2. Demonstrate your growth potential. Buyers are looking for centers that can keep growing and where a buyer can add value, according to Mr. Kennedy. “The company needs to feel that there’s an upside to a partnership and that this is not a center that has peaked,” he says. “A center may be undermanaged or have other issues like managed care contracting, but it will be attractive as long as the company knows it can do something with the ASC.”
ASCs that are looking to sell part of their center need to have an explanation for their growth process, Mr. Kennedy says. This includes showing that physician-partners have growing practices or that there are untapped opportunities in within the community.
This is not limited to multi-specialty ASCs either. “A single-specialty ASC could be attractive to a buyer as long as it is aligned with a strong practice(s) or can outreach to growing practices in the area,” Mr. Kennedy says.
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