Episode 89: Economic Considerations for Private Equity Transactions

Max Reiboldt joins Mark to discuss the economic terms to consider when pursuing a private equity deal. Max and Mark provide a high-level overview of the financial terms of private equity deals, including determining up-front value and the future sale of the practice.

‍Episode Synopsis

‍Max and Mark discuss their experience with private equity transactions and which economic terms to consider when pursuing a private equity deal. Normally, the practice retains all profits and distributes them to the partners within the practice annually. Therefore, when reviewing an income statement, there is little to no EBITDA. As part of a private equity deal, the practice needs to create upfront value through other means. Max and Mark discuss how to create upfront value and the various approaches to the valuation of a medical practice for a private equity transaction.

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Extras

‍Episode 85: Non-Economic Considerations for Private Equity Transactions

‍Episode 56: Private Equity Deals: Operational Components of the Transaction

‍The Role of Management Services in Private Equity Transactions

‍Episode 55: Private Equity Deals: Approaching a Deal Strategically

‍Defining Private Equity Transactions in Healthcare and Understanding Deal Options for Medical Groups

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