Knowing the transactional value of your business is critical.
As a business owner or potential owner, it’s important to understand the value of your medical practice. Whether you are considering an equity offering to an associate provider, being offered a co-ownership position, exploring the potential sale of your practice to another entity, or any other type of transaction, it is critical to understand the components of business value.
At BSM Consulting, our goal is to provide an accurate, independent, unbiased assessment of a practice’s value to help clients make an informed decision. We know every business transaction is unique, and our customized approach is geared toward meeting a client’s exact needs.
With more than 40 years of extensive experience, we have regularly represented the buyer and seller in transactions, requiring valuations for dermatology, ophthalmology, plastic surgery, aesthetic medicine practices, and ambulatory surgery centers (ASCs) to name a few.
We offer business valuations and overall transaction support for these common situations:
Purchase or sell a practice.
When looking to purchase another business or sell a practice/ASC, we help clients estimate business value and assist with the business terms of the purchase agreement such as pricing, post-sale compensation of the seller, and other transactional considerations.
Acquire or merge with another business.
If a business intends to be part of a merger, we can provide a valuation of each entity and supply overall support related to the key strategic, financial, and operational considerations that must be addressed in the process.
Assist associate physicians in reviewing partnership offers.
When an employed associate is approached by the business to become a partner, we help the associate review the offer and term sheet, assist with pricing and other buy-in terms, and educate the associate on the overall feasibility of the opportunity.
Determine value of shares in an ASC.
We assist ASC owners and physicians looking to sell or acquire shares by determining the approximate value of the facility, whether involving an inter-doctor transaction or a corporate/institutional buyer.
Estimate the fair-market value of medical and office equipment.
We help clients determine the fair-market value of tangible assets such as medical and office equipment, furniture, leasehold improvements, and computer hardware and software. We do not perform physical asset appraisals; rather, we rely on industry accepted methodologies for valuing assets that are suitable for most transactions.
Extend ownership offer to an employed physician.
When a practice or ASC intends to offer co-ownership to an employed associate, it’s important to conduct a full opportunity assessment. Here’s how we help:
- Provide an estimate of the fair-market value of the business, including assessment of tangible assets
- Deliver guidance to determine the extent of goodwill or value for the buyer and recommend how this amount should be structured
- Create a fair buy-in structure that is reasonable for all parties
Provide guidance regarding partner dissolutions and other legal action.
We understand how stressful it is to be involved in legal action. While we do not provide legal support, we can help clients determine the business value. Members of our team have served as expert witnesses in complex partnership dissolutions.
Review of Contract Proposals
Whether you’re dealing with an employment agreement, office lease, letter of intent, purchase/sale agreement, expense-sharing arrangement or other documents, our experienced consultants can identify provisions that may deviate from the norm, suggesting ways that terms might be improved for greater equitability, and assessing the implications of certain provisions in ways that help you make an intelligent and informed decision. We can also work with your attorney and tax advisor as needed to create an effective comprehensive team of experts.
Support the sale of your practice to a private equity firm, corporate buyer, or health system.
We provide advice to clients regarding pricing and terms related to the sale of a practice or ASC. Here's how we help:
- Determine fair market value of net equity
- Account for assets and liabilities to be included/excluded
- Provide counsel regarding strategic and operational issues
- Help assess viable alternatives
- Work closley with your accountant, attorney, and other advisors to smoothe out the process and get things done
While we can effectively guide you through a variety of transactional support scenarios, our consulting team does not provide legal support. With any of these types of transactions, we strongly recommend retaining qualified legal and tax counsel.
Let’s set up an initial complimentary consultation.
Sometimes it’s helpful to talk things through. A complimentary consultation with a member of our experienced business transactions team can provide an opportunity to discuss your specific needs and identify how we can help. Since every engagement is unique, this initial consultation can provide the foundation for an optimal work plan tailored for your needs and budget.