Is Private Equity Really for You? Five “Big Picture” Factors for Eye-Care Groups Contemplating the PE Route

Ophthalmology Management

Gary W. Herschman and Anjana D. Patel, Members of the Firm in the Health Care & Life Sciences practice, in the firm’s Newark office, co-authored an article in Ophthalmology Management, titled “Is Private Equity Really for You? Five “Big Picture” Factors for Eye-Care Groups Contemplating the PE Route.”

Following is an excerpt:

Private equity (PE) investments in the medical practice world have been getting a lot of buzz during the past few years, particularly in ophthalmology. In the past several years, the number of PE firms investing in ophthalmology increased from one transaction in 2012 to more than 20 transactions in 2018, according to an article in Becker’s ASC Review last year. Further, Provident Healthcare Partners notes that a PE firm established a new ophthalmology platform during 12 consecutive quarters from the last quarter of 2016 through the third quarter of 2019.

When it comes to evaluating whether a potential PE transaction is right for your group, our experience as health-care transactional counsel representing multiple physician groups (including eye-care groups) across the country in these types of transactions over the past several years has taught us there are five major factors absolutely critical to consider.