Why private equity firms are buying up primary care practices
When Oak Street Health, a Chicago-based network of seven primary-care clinics, began looking for investors last year for expansion, it talked with about 40 private-equity funds.About 15 firms came to Chicago to conduct due diligence, and most ended up bidding, said Oak Street CEO Mike Pykosz, whose group focuses on coordinating care for patients in traditional Medicare and Medicare Advantage plans. The group ultimately chose Harbour Point Capital, a New York-based private-equity firm.
PE and VC bring rapid change to the field of dentistry
Dentistry is a field that typically has experienced evolutionary, not revolutionary, growth. During a 2014 CERECdoctors.com symposium, one speaker stated that 20% of the changes in dentistry occurred prior to 2005, and 80% of the changes have occurred since then. A great explanation for this is the increase in research and development and technology in dentistry. On one hand, we have seen revolutionary changes in delivery and clinical resources, and on the other, we are starting to see rapid changes in dentistry’s organizational structure and business operations.
Great growth in dental practice management
There has been great growth in dental practice management during the last couple decades. In the past decade alone, more than 25 private equity firms invested significantly in dental practice management, and some large companies in the sector have seen annual revenue of more than $100 million. This has evolved to the point where there are at least 10 large-scale dental practice management companies. In early July, Dental Care Alliance, one of the largest DPM companies in the U.S., was sold to New York private equity firm Harvest Partners, LP.
Tax, Trust and Estate Planning Considerations When Selling A Business
Selling a business is complicated. On the one hand, the owner is trying to realize the greatest potential for the business monetarily as well as strategically both of which will impact the owner and the employees. If this is the first monetization event for an owner, not only does the owner have to learn and evaluate his/her strategic business alternatives but also is tasked with learning and planning for his/her current and/or potential beneficiaries simultaneously. Oftentimes, the immediacy of the strategic deal overwhelms and usurps any thought of personal planning. It is for this latter reason that the sooner a business owner begins learning about financial as well as trust, tax and estate planning the better as it should afford peace of mind, confidence and flexibility later should a liquidity event present itself.