Assessing the PE Partner’s Experience, Financial Track Record, and Culture: Critical Consideration #5

A physician group should conduct extensive “reverse due diligence” before entering into a private equity (PE) partnership.

Important things to consider include:

• the PE firm’s financial ability to close the transaction with the physician group;
• the physicians’ comfort level with the PE firm’s experience, integrity, culture, vision, and fit as a partner for the group;
• and the PE partner’s specific experience and track record investing in physician services – in terms of both working well with physicians and achieving substantial value enhancement.

You should speak directly with multiple physicians who have partnered with the investor in the past to assess all of these factors.

Check out our other top considerations for physician groups evaluating PE.

To learn more, join us for our Physician Transactions 2020 webinar series.

You can also read more about the impact the COVID-19 pandemic has had on transactions in “INSIGHT: Health-Care Transactions Will Pick Back Up After Virus,” an article in Bloomberg Health Law & Business News, by Anjali N.C. Downs, Gary W. Herschman, and Anjana D. Patel.