Gary Herschman Quoted in “Takeaways from the 6th Annual Physician Transactions Conference”

The role of private equity in healthcare was the focus of the 6th Annual Physician Transactions Conference on March 9, 2023. Physicians, private equity investors, investment bankers and other healthcare business leaders gathered in Las Vegas to talk about what independent practices need to know about brokering a deal with a private equity firm. 
Attendees posed questions to other physicians who have already entered into PE deals, and panelists provided insights to help physicians consider whether partnering with outside investors will be the right path forward for their practices.
Levin Associates was in attendance at the conference. Here is a summary of the main takeaways the panelists shared throughout the day. …
A more realistic, tempered market for valuations
The sentiment among the panelists at the Physician Transactions Conference was that while healthcare remains a “robust” market – with now even being described as a “golden time” for investment — valuations are expected to come down from record highs. …
One of the questions posed to panelists centered on how physicians should react to the current market conditions: Should they wait to make a deal with a private equity firm until there is another spike in valuations? Should they wait and see what happens with interest rates?
The resounding answer from the panelists was “no.” Much like individual investors are advised against trying to time the stock market, the same holds true for physician practices. As Gary Herschman of Epstein Becker Green pointed out, the post-COVID reaction caused valuations to go “over the top” in 2021; waiting for a moment like that to hit again is not advisable because sellers could be waiting “forever.”