Deal Structure – It is not just about 100% Sale of Practice versus Joint Venture/Partnership

by | Sep 11, 2020

I had a intro call with a corporate consolidator today with whom I was not acquainted. One item that was discussed had to do with deal structure, mainly focusing on the pros and cons of 100% Sale versus Joint Ventures.

All things being equal, I personally have a preference for one versus the other. But this will have to wait for a future article.

Today, I want to bring to the table the implications of an owner who wants to exit after a short transition period versus an owner who wants to continue as Managing DVM.

Below is a snippet from the valuation package I’ve shared with my clients. Without the benefit of a proper walk-through/review, please consider it as a simple overview.

For example, just because Practice Manager (PM) is not listed on both sides, it does not mean that a PM does not exist or is not important in the Owner Exits scenario. A PM is vital to a hospital, but there is a nuanced difference that is very important (consider #1 in my “6 Things You Have NOT Considered…” article).