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Should I Consider Partnering with Private Equity?

Posted in BGP Blog

We help physician practice owners maximize their practices’ value and find the best private equity (PE) partner by running competitive sale processes. We’ve successfully guided over 25 practices through this journey.

A PE partnership can deliver a large payout—often taxed at favorable capital gains rates—and provide support with HR, billing, IT investments (such as AI and EMR systems), and growth initiatives. However, it also means sharing control. Here are key factors to consider when deciding if a PE partnership is right for you.

Two Real Examples

Taking the Deal

A $1 million+ EBITDA practice owner was tired of HR and management headaches. She chose a partner that not only offered her an 8-figure valuation, but also relieved many of her administrative tasks, letting her refocus on patient care.

Deciding to Wait

Another successful group chose to hold off on PE. They opened a second location to boost earnings. Their plan: revisit PE in a year or two, aiming for an even higher valuation.

Key Points to Weigh

A PE deal provides a substantial payout, taxed at favorable capital gains rates. Do you take the cash now or expand your practice to potentially sell for more later? Decide whether to grow independently or leverage PE’s expertise in financing, marketing, real estate, recruiting, and payor relations.

PE-backed firms usually handle billing, HR, and accounting—major headaches for many physicians. Being part of a larger company may also provide IT investments, such as newer AI tools. This allows you to focus on patient care but requires sharing decision-making with a larger partner.

Most PE firms want to keep your employees. Some roles may shift (e.g., marketing or billing might integrate with the larger group), but clinical decisions remain with you and your providers.

While some fear that PE ownership might reduce care quality, we haven’t seen evidence of worse outcomes. Many practices report steady or improved results, especially under clinician-only advisory boards.

Finding the Right Fit

Selling your practice is one of the biggest decisions you’ll make. Every PE firm and platform has its own culture, approach, and priorities. Exploring multiple options helps ensure you find a partner that supports both your financial goals and the well-being of your team and patients.

Let’s Talk Further

Have questions about PE or your practice’s value? Let’s talk.
Email: [email protected]

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