CASE STUDY
How a Multi-Provider Primary Care Practice Achieved an Optimal Exit
CLIENT PROFILE
A large Midwest primary care practice with multiple providers, locations and various related special purpose entities.
THE OPPORTUNITY
As leadership at this large Midwest primary care practice considered “what’s next?,” they set out to find a long-term exit strategy or partnership that would meet their needs, as well as the needs of their team and the community. Their objective was clear: to secure an agreement that would ensure the continuation of the practice from an operations an community needs perspective, meet the senior and junior shareholders’ financial goals and ensure that the long-term staff of over 100 employees had job security post-transaction.
The path to meet those objectives, however, was less clear. In addition to the traditional practice, the client owned an urgent care center, clinical research company and various real estate entities, with a different ownership composition for each. And while the group had conducted initial high-level discussions with some prospective suitors, they were not comfortable navigating the complexities of a transaction on their own.
The senior partner was looking for an advisor that could be trusted to help guide the group through the various offers available to them, as well as negotiate and direct the transaction on their behalf with the prospective buyer.
THE SOLUTION
Thanks to a long prior history of working with the client on various advisory and management services, the team at MMG had an excellent understanding of the practice from a business, operational and clinical perspective, as well as a deep grasp of the group’s overall goals and objectives.
MMG stepped in to support this client in an advisory capacity, interacting directly with various third parties on behalf of the seller to ensure their objectives were met. This included the sale of the acquired assets of the operating practice, as well as the other related entities owned by the group and their partners.
MMG also worked with all parties to ensure that long-term employment contracts were in place for all providers and management team members wishing to continue employment with the buyer – a tertiary health system.
Lastly, the MMG team provided support and guidance for the client’s management team during the complex due diligence process and worked directly with both parties’ legal and tax advisory teams through the final signed transaction process.
THE OUTCOME
While the practice transaction process can feel daunting, having a trusted partner to guide you through the complex details and stand in your corner throughout the vetting process and negotiations can make all the difference. In this case, MMG worked closely with the client and all parties involved to successfully manage a deal from start to finish that met all objectives.
The work MMG performed helped the practice shareholders meet their overall clinical and financial goals, ensured patients continued to be provided care in a health system that many were already associated with, and ensured that the practice staff were given opportunities to continue providing outstanding patient care.