Selling an interest in a healthcare business is complicated and challenging. Positive outcomes are a result of a deep understanding of the business, transactional expertise, knowledge of the Seller and the Buyer communities and the ability to most effectively package, market and manage the sales process.
Merritt Healthcare Advisors understands the complexity of the financial and non-financial deal terms. Our knowledge of your business, as actual surgery center owners and operators, enables us to most effectively analyze your business, take corrective measures and project your financials. By doing so, we create a confidential information memorandum (CIM) and then a competitive environment designed to drive the best results for our clients.
Physician owners or representatives without the specific skills required to manage this process are at a significant disadvantage in the process and, as a result, cannot expect to realize an optimal outcome. To achieve a successful outcome requires an Advisor with financial and operational expertise, an extensive network of industry contacts, and proven ability to successfully present and negotiate on behalf of their clients.
Our process typically involves the following steps:
- Spend time with owner(s) understanding goals and objective and reasons for selling an interest.
- Create a business proposal that mitigates any risk for owners and ensures that unless all business objectives are met, a deal will not be consummated.
- Merritt creates a formal data room for each client, an analyst is assigned to your organization, and a complete analysis of your business takes place.
- Once due diligence is completed, we coordinate a meeting to review our finding. When necessary, we craft a corrective and/or growth plan for the business.
- Develop ASC valuation, growth opportunities, and pricing recommendations.
- Create a formal Confidential Information Memorandum (CIM) used to most effectively package and market your organization.
- Develop sales strategy; identify best buyer prospects; these can include healthcare systems and hospitals, strategic buyers and private equity firms.
- Obtain signed confidentiality agreements from potential buyers.
- Distribute CIM to potential partners/buyers.
- Organize and attend surgery center site visits and company presentations for owners.
- Coordinate Letters of Intent, Term Sheets, and purchase proposals.
- Review and advise on deal points and terms of deal including both financial and non-financial elements.
- Coordinate all closing functions with organization, attorneys and buyers.
This is an extremely time-consuming and complex process, more often than not lasting in excess of a year. By eliminating risk for the owners, effectively positioning your organization, creating the most effective marketing piece, validating our projections and the integrity of the offering, creating the most competitive environment for your business and then understanding how to push potential buyers to agree to the terms of the deal we want, we are able to have a significant impact on the outcome of your sale.
If you have been thinking about selling your ambulatory surgery center real estate or medical office building, this is an opportune time to seek purchase proposals. The market for selling medical real estate is the strongest it has been at any time in the past and, unlike traditional commercial real estate, working with a national firm versus a local firm will typically enable you to realize the greatest value for your asset.
Our real estate division has the unique ability to accurately gauge your facility’s value, inspect your property and design an exceptional marketing package. Based on your goals and objectives, we will introduce you to the potential buyers, which healthcare Real Estate lnvestment Trusts (REITs), of which there are multiple types, private investors, private equity firms, and real estate investment companies who are focused on acquiring ASC/MOB real estate.
Merritt Healthcare Advisors can help you navigate the complex process of selling your healthcare real estate in a simple, straightforward manner and ensure that you get the best outcome.
We provide a broad array of advisory and turnaround services to our clients including feasibility studies, compliance assistance and operational reviews.
- Advisory services related to Service Line Co-Management Agreements between Hospitals and Physicians.
- Operations and financial consulting. Comprehensive analysis of facility performance, cost structures, managed care contracts and case load/mix.
- Strategic planning, identification of expansion opportunities and succession plans.
- Billing and collection process mapping and performance review.
- State Licensing, Medicare Certification and third-party accreditation process.
Since 2001, Merritt Healthcare has been an owner, operator, manager and developer of ASCs. We are actively evaluating opportunities for the establishment, management and acquisition of ASCs. This includes both single and multi-specialty facilities as well as hospital outpatient departments.
Turnkey Development Services Include:
- Completion of feasibility studies.
- Arranging third-party financing.
- Overseeing design and construction of facility. Advising on ownership versus rent options for real estate.
- Selection of equipment.
- Preparation of policy and procedures compliant with regulatory requirements and third-party accreditation.
- Hiring and training of clinical and non-clinical staff.
- State Licensing, Medicare Certification and Joint Commission or AAAHC third-party accreditation process.
- Management of physician credentialing process & insurance contracting process.
- Selection of various outside service contracts (cleaning, biomed, etc.).
- Placement of facility insurance policies.
- Initial systems and process set up.
Ongoing Management Services Include:
- General management of facility operations.
- Ongoing monitoring of facility performance, operating margins and case load/mix.
- Management of clinical and non-clinical staff.
- Management of operating expenses.
- Supply management.
- Management of billing and collection process and performance.
- Managed care contracting.
- Responsibility for ongoing requirements of state licensing, Medicare certification and third-party accreditation process.
- Recruitment of additional physicians.
- Provision of reporting information to owners.