Physician, dental, and veterinarian practices have all gone through the run of private equity roll-ups. But are PE-Backed Firms now focusing their funds on cash-pay, elective wellness services? If recent activity has been any indicator, PE-backed firms are not only examining the IV and wellness industry but have already begun picking up and purchasing these clinics.
What are they looking for and how can you position yourself for an opportunity?
- Is your company set up in a way that would easily allow a new owner to buy it, take over assets, employees, and licensure, without having to re-structure in the middle of a roll-up?
- Do you have branding and operations streamlined and structured in a way that you can easily replicate it if you were to open future sites?
- Are you operating in compliance? Have you had a legal audit conducted on your operations within the last 6 months?
- What do you financials look like? Do you keep clean and accurate books and run the company like a truly separate entity?
PE-backed Firms want and look for opportunities that are turn-key and cash-flow from day one. They have entered this space and already begun the roll-up of multi-site operations that have address the points above in a way to create an attractive business structure that will success in any economy.
If your ultimate goal is to create an opportunity like this, it’s best to start preparing at least 6-12 months in advance so that you’re ready when the right opportunity presents itself. PE is already here in the IV industry, for clinics and ancillary services and products. Be ready or be last.