Sale or Succession? Helping a Multi-Office Dermatology Practice Owner Decide What’s Next
A large, multi-office dermatology and cosmetic practice in the Midwest with a brand well known in the region.
As a high-performing practice group with a strong regional reputation, the practice had been approached multiple times by potential acquirors. Not initially interested in a sale transaction, the owner was seeking a plan that allowed for continued growth and protected the practice and the team’s needs, while also preparing for a seamless succession.
MMG worked closely with the physician owner over the course of several years to review all options and determine a plan that would best suit the practice’s needs and interests. Ultimately, this included options for both a succession plan and – if it proved to be a better solution – the sale of the practice to a third party. MMG worked with the owner to develop a potential successor physician while simultaneously reviewing options of partners that would be a good fit if an acquisition became the desired outcome. The team led a series of interviews with numerous partner organizations, the outputs of which helped the owner determine that a sale of the practice was the best option. Once this decision was made, MMG assisted in identifying the right partner, developing the letter of intent, negotiating the terms and assisting legal teams for both parties through due diligence and closing.
Plans are important, but only as long as they suit your goals. In this scenario, MMG assisted the practice owner and practice advisors through the complex process of succession planning, yet, ultimately, the owner’s willingness to explore all the options available led to the optimal outcome. The practice was successfully acquired by a national, top-five dermatology network, and the transition closed without issues. MMG continues to check in with the acquiring network and the former practice owner to discuss progress and future opportunities.