Anatomy of a Private Equity Transaction and Current M&A Trends

Isabelle Bibet-Kalinyak will be speaking at the Medical Group Management Association's (MGMA) Annual Conference in New Orleans on October 15, 2019. Click here to learn more

Physician groups continue to represent an attractive value proposition for private equity investors. Despite robust consolidation activity in the past five years, numerous specialty markets still remain highly fragmented and continue to attract investors. At the macro level, several factors fuel consolidation, including operational complexity, payer dynamics, pressure on reimbursement rates, erosion of profit margins, availability of capital, practices’ inability to drive significant volume growth, and changing physician demographics. At the subsector level, attractive growth rates in certain specialty markets and other factors, compounded by persisting market fragmentation, further drive consolidation. This is therefore a critical time for physician groups. By familiarizing themselves with the process, they can increase the number and value of future offers and reduce transaction stress and expenses. This session, led by a healthcare attorney and an investment banker, will educate participants about (1) factors contributing to this trend; (2) key players involved in a private equity deal; (3) important considerations in weighing options; (4) mechanics of a typical deal; (5) role of advisors such as attorneys and investment bankers; (6) potential risks and rewards for providers at different stages in their life; (7) costs involved in going through the process; (8) how to best prepare for a private equity transaction; and (9) potential alternatives.