Understanding who you are partnering with for an M&A transition starts with looking beyond the name on the door. Behind many healthcare organizations is a private equity sponsor whose capital, strategy, and long-term goals can influence the direction of the business. Understanding who is really behind the deal, and what they are working toward, is an important part of making an informed decision.
In this episode of The Advisor’s Table, 7 Pillars Founding Partner, Brett Pierce, joins Brian to unpack common misconceptions around private equity and explain its role in the healthcare industry. They explore the history of private equity, how prevalent it is in our everyday lives, and the role private equity sponsors can play behind the healthcare organizations (i.e., DSOs or MSOs) that practice owners may ultimately partner with.
Key Takeaways for Healthcare Business Owners:
- Most doctors aren’t selling to private equity. For the doctor, the DSO or MSO helps optimize the practice while private equity is just the sponsor.
- Understanding who the private equity sponsor is just as important as understanding the DSO or MSO. It is crucial to understand where the funding is coming from and to know their goals.
Why This Matters for Healthcare Business Owners
This episode of The Advisor’s Table gives healthcare business owners the history of private equity and its role in the healthcare industry, helping owners understand what partnering with a group could look like for them.