Private Equity Partner Peter Bogdanow was recently interviewed by Healio, during which he discussed the intricacies of negotiating physician practice acquisitions with private equity firms.
Peter offered valuable insights into how private equity firms identify and evaluate physician practices for acquisition, emphasizing the importance of investment bankers and market intelligence studies in pinpointing attractive targets. "For many, the first stop is with investment bankers," he noted, highlighting their role in connecting practices with interested funds.
Peter also addressed critical questions physician owners should consider during the negotiation process with private equity firms. In particular, he discussed the importance of understanding the firm's acquisition strategy, timeline for exit and structure for physician compensation. He suggested asking about plans for the practice's future, including potential enhancements and how expenses will be allocated across holdings. "The transaction cannot be evaluated properly unless the specifics about equity and any deferrals related to it are known," he stressed, underscoring the need for clarity on financial arrangements.
Finally, Peter shared his perspective on the key elements that contribute to successful acquisitions from both the physician's and private equity firm's viewpoints, the importance of a competent management services organization, and a strong partnership between the physicians and the firm, driving toward a shared vision. "It is vital that the relationship is strong enough that there is open communication," Peter said, highlighting the necessity of collaboration to ensure the acquisition achieves its intended goals.
“Tips for negotiating successful practice acquisition with a private equity firm,” Healio, June 17, 2025
Dallas
