Given that many physicians who have sold their ASCs to a strategic partner (ASC management company, hospital or private equity firm) have done so by themselves, physician-owners of ASCs may be interested in better understanding what goes into a successful transaction and what to look out for.
Here, Jon Vick, founder and president of ASCs Inc., and Jim Freund, partner at ASCs Inc., answer questions for physician owners about selling their business.
Question: Let’s start by asking what makes selling a surgery center challenging?
Jon Vick and Jim Freund: For a seller this is likely the first and only time that you will go through such a transaction. Prospective buyers have a great deal of transactional experience and this puts the sellers at a distinct disadvantage. While there isn’t a lot the sellers can do to gain useful experience, there are a number of things that you can do to better position yourself for success. Another item that is challenging is that transactions have gotten significantly more complex, buyers are doing more due diligence and the process often takes more than a year to complete, so being prepared for that will be to your benefit.