CASE STUDY
Successfully navigating a primary care group through their practice transaction.
CLIENT PROFILE
A large primary care group in the Western Region of the United States.
WHAT WE DID
MMG worked with both the buyer and seller on the key points of the initial letter of intent, oversaw the due diligence process on behalf of the seller and worked directly with the legal teams for both parties through the final transaction.
THE OPPORTUNITY
After years of growth and success in the western United States, this large primary care group had been approached by multiple third-party investors interested in acquiring the practice in hopes of growing their regional presence in that market. While the owner of the practice had a strong understanding of the market and the various investors’ offers, he was looking for an advisor with experience in the transaction advisory space and deep expertise in the healthcare industry to help him achieve the best possible outcome.
Specifically, the owner needed a partner who could:
- Advise and guide him around the nuances of the various offers available
- Ensure the practice would be presented to potential buyers in a way that maximized value.
- Help oversee the negotiations and navigate the final transaction on his behalf
- Ensure a seamless integration of his practice into the prospective new entity
THE SOLUTION
The MMG team conducted a thorough initial meeting with the practice owner to gather insights on the business from a financial, operational, and clinical perspective. The team also drilled down into the owner’s personal priorities, including everything from the purchase price to employment needs to the long-term requirements of his fellow providers, employees, and patients.
Once the team had a strong understanding of the practice owner’s goals, they engaged directly with the various investors to gather the details and relay them back to the owner, ensuring he clearly understood the offers available. They then helped him determine which of the offers would be the best fit for him and the practice.
Finally, MMG worked with both the buyer and seller on the key points of the initial letter of intent, oversaw the due diligence process on behalf of the seller and worked directly with the legal teams for both parties through the final transaction.
THE OUTCOME
A practice transaction can feel daunting without the right support, but thanks to MMG’s close work with both the owner and the buyers, the business deal was navigated seamlessly. Patients were successfully transitioned, the buyer was able to establish an anchor practice in a new regional market and, most importantly, our client and his employees achieved the goals outlined to MMG at the onset of the project, including securing a purchase price greater than what had been initially anticipated.
Ronnen Isakov is Managing Director Advisory Service of MMG Healthcare Solutions / Medic Management Group. His background includes extensive work in areas including business advisory, valuation, network optimization, transaction support, and project management. MMG is a national provider of consulting services and back office administrative support to independent and system owned physician practice groups. Additionally, MMG has been formally recognized as a multi-year Northeast Ohio Top Workplaces award winner.