Selling Your Medical Practice Without Experienced Representation Is A Huge Mistake. Viper Partners Explains Why

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Jan 17, 2023, 08:00 ET

PALM BEACH, Fla., Jan. 17, 2023 /PRNewswire/ -- It seems that every time you browse through the financial news the subject of Private Equity firms consolidating medical practices is a hot topic. Billions of dollars pour into DSO's and MSO's every year offering Doctors the opportunity to sell out, join partnerships or set up a planned exit strategy for themselves. Truly remarkably interesting opportunities for all parties. Our team decided to look deeper which led us to Viper Partners, an Investment Bank right in the middle of all thing's consolidation in the medical space.

What we learned; medical practices are valued at a certain multiple of EBITDA (a finance term for net profit). The multiple is different depending on the type of practice but for this discussion we will talk about Plastic Surgery offices which are typically in the 6-8 multiple range. Meaning, if your EBITDA were 1m dollars, on the surface the business would be worth 6-8 million dollars. The typical deal would fund in a combination of cash and stock making the doctor owner a partner with an average 3–5-year commitment to stay on after closing. These transactions are tremendously successful.

Sounds simple, it is not but it can be. Viper was quick to explain the value of working with a group like them. Obviously, the goal of the buyer is to get the business for the best price and seller the opposite, just like any transaction. Fair enough. So again, we went deeper. Viper is a full-service investment bank that represents oral surgeons, dentists, plastic surgeons, medspa owners, and cardiologists. With all departments in house across their two florida locations they start by taking a deep dive into each business's financials to determine the true value or EBITDA of the business. They then underwrite the deal and meet with the sellers to price the deal before taking it to market. Guided by 30 years of experience they are experts at what to avoid and how to get the maximum value for a practice while securing all other key points, critical to insure a great deal. They explained that not only does a doctor not have the time to do this themselves they also do not have the experience of how to dodge the land mines waiting ahead.

Viper recognizes that any buyer they introduce their client to is reputable and great at what they do. In every case it is a relief to buyers to have a company like Viper on the selling side to guide the Doctor through the process. In the end it will lead to quicker and more successful closings and partnerships. Isn't that what it is all about?

Viper Partners is an investment banking firm located in Palm Beach, Florida. For more information, please contact: Samir Qureshi, [email protected], (305)-281-5259.

SOURCE Viper Equity Partners