Private Equity Exit Strategies

I am delighted to share the recording of a recent webinar provided by Dr. Steven M. Wilson on the topic of Private Equity Exit Strategies.  The Growth Cooperative is offering this webinar due to our relationship with Visionary Eye Partners, one of the leading private equity-backed companies who is consolidating the eye care market. Dr. Wilson has worked, and is working with both The Growth Cooperative and Visionary Eye Partners and offers a unique, first-hand insight into the process of selling your practrice to a venture firm.  I encourage you to view the video recording below:

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I’d like to highlight a few aspects of this program and hope that you will tune in to our next two webinars, “My State Passed The Vision Insurance L0aw. How Do I Manage My Optical Lab Now? which will be held December 5, 2018 at 7PM EST and “My State Passed The Vision Insurance Law. How Do I Manage My Frame Inventory Now?” which will be held December 12, 2018 at 7PM EST. Both of these events are also given by Dr. Steven M. Wilson and sposnored by Visionary Eye Partners.

The process of preparing for and receiving an exciting offer for your practice from private equity sources is not easy and I want to encourage you to utilize the skills and expertise of The Growth Cooperative to accomplish this task. In many ways, it is no different from selling your home where a real estate agent can offer valuable guidance and insight into the market and process to get you the best process for your home. What do we know about this process that makes it a safe process for you to embark upon:

  • We help you organize your financial information to enable you to present your practice in the right manner to achieve the highest valuation possible.  While this may seem straightforward, and perhaps even obvious, it is anything but. Earnings, or what your practice produced financially last year is anything but straightforward and we can assist you in putting forward the highest acceptable number.
  • Once we understand your practice value, we get you a written offer upfront, at the start of the process. Our reasoning is that no one wants to embark on the arduous due diligence process unless you know that what you are working for is exactly what you need to move to the next level of your career.
  • Upon closing, you receive your money up front with just a 10% hold back for 12 months.  In other exit scenarios, this is not always the case and you are left as the funding source to your own exit.
  • You can stay and continue to practice, albeit at an Associate salary (you are no longer the owner), for as long as you’d like and we assist with the creation of this employment contract as well.
  • Your staff will remain intake as will your practice name.  Our buyers are not rebranding your practice and nor are they squeezing out earning by firing the staff.  They seek healthy well-run organizations and your financials should bear that out.

At the moment, we have about $40 million of practice sale value in our pipeline. We have some very happy doctors coming our the other side of the process which takes 120 days and some very busy doctors in midstream.  Here’s the best part. If you are thinking about selling your practice, start an evaluation and get an offer.  See what the numbers look like.  You need to have a minimum annual EBITDA (net earnings) of $250,000 (your 2017 tax return will grossly understate this number so call us if you have questions about this), or an annual revenue of $1 million or more. The revenue number is easier to access and typically there is not a lot of difference as to how this is assessed. Multi-location practice? Step to the front of the line.  This is very positive for a buyer.

Let’s discuss your specific situation. We are here to help you understand the process and the eventual outcome.  There is nothing to buy and nothing for us to sell. If you call, there is no obligation and you will learn a lot.  If you are intersted, let’s work together.  If you don’t meet the criteria, stay with us and let The Growth Cooperative help you arrive at your best year of earnings yet in 2019 and THEN, turn around and sell. Call for more information 415-481-9008.

Look for our upcoming ebook on Selling Your Practice: A How-To Guide for even greater detail and information.