The ABCs of selling ASCs
The ABCs of selling ASCs
For surgery center owners, at some point you will likely consider selling an interest in your practice, ASC and/or real estate. While the motivations are different for everyone, as are the expectations, there are certain aspects of any transaction that are vitally important to consider before you embark on the sales process.
A is for AWARE. Be aware that while this is most likely the first and only time that you as a physician owner will go through the sales process, that the buyers of your business have a level of expertise that puts you at a real disadvantage. Most physicians will tell you that they wish they had known just how challenging, time consuming and complex the sales process was before they got involved in it and if they had known they would have taken a different approach.
B is be BOLD. The blood, sweat and tears that have gone into growing your organization have put you in a position where you have an opportunity to monetize your investment. Don’t settle for a marginal result, do the research, do your homework, understand what goes into a successful process and either work with someone who can help you are make sure you follow the basic principles of a successful transaction or make sure you have the level or expertise required to manage a successful process. There is a lot more than money at stake, after all when the transaction is complete you will have a partner for most likely the remainder of your professional career.
C is for COMPETITION. Most ASCs are sold directly to a hospital or a national ASC organization or a combination of both, private equity even plays a role in our industry. Most physician owners engage with organizations that they know or that have approached them, that they are comfortable with and who together they work with to negotiate what they consider to be a fair and reasonable offer. However, like virtually every other transaction that takes place, unless there is a competitive sales process there is no way of knowing whether or not you are actually realizing the best result for your organization.
As a final note, while the best financial result may be your primary goal, remember that whomever you decide to work with will be your partner, potentially for the remainder of your professional career, and that working with someone that enhances all aspects of your organization is perhaps the most important aspect of any successful transaction.
Jim Freund, Senior Partner at ASCs Inc., will present the "Keys to Successfully Selling an Interest in Your ASC or your ASC/MOB Real Estate" at the ASCA 2020 Virtual Conference and Expo on July 9th. At some point virtually every ASC owner will consider selling an interest in their business and/or their real estate. Learn about current opportunities and trends, the challenges and [...]
Seven Common Mistakes Made by Sellers of ASC/MOB Real Estate Many ASC physician-owners who own their ASC real estate may be considering a sale/leaseback to provide liquidity and a source of capital during the current slowdown. Due to the long-term success and profitability of surgery centers, excellent credit history and rent coverage, and the likelihood that the ASC will remain in the same [...]
Many ASC physician-owners also own the underlying real estate and may not realize how valuable that property has become. Due to the long-term success and profitability of surgery centers, excellent credit history and rent coverage, and the likelihood that the ASC will remain in the same location for many years to come, ASC real estate has become increasingly attractive to real estate investors. [...]
For surgery center owners, at some point you will likely consider selling an interest in your practice, ASC and/or real estate. While the motivations are different for everyone, as are the expectations, there are certain aspects of any transaction that are vitally important to consider before you embark on the sales process. A is for AWARE. Be aware that while this is most likely [...]
A 21,000-square-foot ASC/MOB property in Meridian, Miss., recently sold for a premium value of $6.8 million. Pain Concepts of Meridian, MS sold their property consisting of a freestanding Medicare certified two-operating room surgery center and medical office space to a Real Estate Investment Trust - in an all-cash transaction. The property, known as Total Pain Care, is the only free-standing surgical center dedicated [...]
At the Becker’s ASC Review 25th Annual Meeting: The Business and Operations of ASCs, a seminar on How to maximize the value of your ASC/MOB real estate and defer taxes in a sale/leaseback was presented. Following are questions and answers from that seminar. Why sell and leaseback my ASC/MOB real estate? Many physicians who own their ASC/MOB real estate do not realize how [...]
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., [...]