Is Private Equity Right for Your Practice? Dr. Ben Chudner

[AdminWolf]

Watch this video & get up to 56 COPE approved credits at CEwire2019!


IS PRIVATE EQUITY RIGHT FOR YOU?
Benjamin S. Chudner, OD, FAAO

Credit Hours: 1
COPE ID: 60328-PM

With private equity spending millions of dollars buying up independent practices throughout North America, it is important to understand if this opportunity is right for you and your practice. This course will review several private equity groups, how optometric practices are valued, and what you can expect from the beginning of the process through the close of the sale.


Visit CEwire2019.com for more information on how to obtain COPE credit for watching this lecture.

 

[AdminWolf]

Thanks again to Ben for putting this together -- it was an eye-opening lecture (no pun intended...)

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[AdminWolf]

One of the difficult issues with PE is that so many people who have been approached (or have sold) are bound up by NDAs, so they can't discuss the process, or how the deal concluded.

It is a shame, because this is really one situation where 'going it alone' when negotiating could cost docs in a big way.

 

[Benjamin Chudner]

Once an NDA is signed as part of the letter of intent (LOI), the PE group should allow the potential seller to discuss the process and post-close life with other doctors that have sold to the group. If they don’t, you need to ask yourself what they are hiding.

 

[AdminWolf]

Once an NDA is signed as part of the letter of intent (LOI), the PE group should allow the potential seller to discuss the process and post-close life with other doctors that have sold to the group. If they don’t, you need to ask yourself what they are hiding.

Right, but what about doctors who haven't yet sold -- ie, the people who are probably most concerned about what life is going to be like...

thanks!
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[Benjamin Chudner]

Those doctors would get to speak to doctors that had sold to find out what life might be like, but only after the NDA is signed. We encourage potential sellers to speak to our doctors that have sold once the LOI is signed. The LOI is necessary to begin due diligence for both parties, but does not mean a sale has to go through.

 

[Gretchyn Bailey]

That's exactly what I was going to ask...what about those who have NOT sold to that group?

 

[Benjamin Chudner]

I guess if they could find those that didn’t sell, they could speak to them. The NDA we have in place makes it so we cannot tell other people who chose not to sell to us.

 

[James Jordan]

Why wouldn't it be a good deal? You sell. You work for 10 more years and don't have to make the decisions. Relax. If you hire an attorney that has done PE deals, they will tell you something the doctors don't know. That's the deal, in the agreement.

 

[Benjamin Chudner]

There are multiple factors to consider when evaluating a deal. I cover this in detail in my CEWire presentation.