Preparing Your Medical Practice for a Private Equity Transaction

Summary for practice owners

This legal and financial presentation outlines how a medical practice can prepare before exploring a private equity transaction. Its owner-first message is to do internal diligence and set priorities before soliciting offers. The speakers cover transaction structure, governing documents, contracts, assets, operational compliance, regulatory exposure, litigation and financial review, with separate attention to coding and taxes. For an OB-GYN group, the breadth of this review is a reminder that buyer scrutiny will reach beyond headline revenue: licenses, payer agreements, employment arrangements, records, coding patterns, credit balances, and compliance processes can all affect timing, valuation, or transaction terms. The panel encourages sellers to identify and address gaps early with experienced legal and accounting support, with coding expertise. It also distinguishes a practice serving as a platform from one joining

an existing platform, and notes that purchase price is only one part of the decision. Owners should also think about post-sale governance, future compensation, rollover equity and control, plus how the deal fits clinicians at different career stages. The presentation stresses evaluating the prospective partner as carefully as the practice itself, including its reputation and alignment with short- and long-term goals. This is a broad planning framework instead of a transaction recommendation. Its value is in helping owners build a work plan well before a buyer’s diligence list arrives, so the practice can make deliberate choices about structure and risk, plus the practice’s desired future.

Owner takeaways

• 2:41 Decide what transaction structure the practice wants before responding to buyer proposals.
• 4:33 Conduct seller-side diligence early so avoidable gaps do not delay or weaken a process.
• 19:17 Review contracts, including technology agreements, for obligations that could complicate a transition.
• 33:06 Independent billing and coding review can reveal issues that affect the reliability of reported earnings.
• 43:10 Evaluate the potential partner’s reputation and alignment with the practice’s longer-term goals.

Why it made the list

Included for its seller-side diligence framework for physician groups, with 453 views and 7 likes.

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This video is published by Frier Levitt on YouTube. Obstetricians.com is not affiliated with the creator, and inclusion is not an endorsement by either party. Watch it on YouTube.