WHY ARE DOCTORS NOT AWARE OF THE AVENUES AVAILABLE?
Many sales avenues have recently emerged with the influx of capital into the purchase of healthcare space. Many have been available for some time but have only been exposed to a select few. The DSO and MSO entities have also effectively held somewhat of a monopoly on this space.
Platform (Similar To MLS)
This platform has been created so buyers can review properly prepared practices in volume and so the practice seller can anonymously place their practice (on the platform) for sale to be reviewed by over 1,200 buyers. These buyers have signed onto the Platform specifically to purchase healthcare practices. The multiples paid vary depending on the practice but the platform believes that they can get any practice a sales price of a minimum of 3x gross revenues. Please review www.MLSforhealthcare.com for a more detailed overview. No other program can deliver the exposure (defined as the number of buyers reviewing) for a practice interested in selling.
Funds Created To Acquire Healthcare Practices
A minimum of three funds have been created that will begin to cash out in the summer of 2024. Their multiple is finite at 3x gross revenue. 1x to be paid at closing and 2x to be paid over the course of 2 years. There is a possibility that the initial payment will be 2x and then 1x paid over 2 years but likely 1x, 1x and 1x. Doctors agree to a 3 year commitment (longer commitments are available) during which they will draw a salary and will share in a percentage of the revenue increase (this is in addition to their lump sum payments). The appealing aspect of this fund is that if you are a practice with 1 million dollars in gross revenue, and you joined a fund, you would receive a wire for 1 million dollars as soon as this summer (with 2 subsequent wires of 1 million over the next 2 years). Of the 3 funds identified, 2 are for dental and 1 is for medical.