Kentuckiana Allergy was a multi-office specialty medical practice that had 5 principal physicians whose personal goals had diverged. The group decided to explore the sale of the practice and had received a preliminary offer from a competitor that was backed by PE money. SAS was retained to help navigate the process and lead the sale. During the sales process SAS was able to identify the value propositions of the client, work with the PE firm to relay those value points, negotiate the multiples and add backs, financially structure the deal to maximize value and minimize tax impact. The end result was that the physicians practice received approximately 2x the original offer at the closing.
“Strothman led us through the entire sales process from helping draft and negotiate the letter of intent to modeling and negotiating all aspects of the deal. In the end we received significantly more than the original offer, achieved a structure that allowed us to minimize taxes, and restructured our real estate to produce additional income streams. The results were excellent.”
–Stuart White MD
Owners and companies face many challenges in the sales process. The exit and monetization process requires owners to come to terms with the end of their association with what they have built. Emotionally they must face realities of market valuation vs Seller perception. Preparing a company for sale is a complex and complicated process. Financials, operations, supply chains and numerous other items need to be documented and in place for inspection. The due diligence process can be disruptive as can the entire process. Maximization of value is critical as the seller can only sell once. Securing viable buyers who are strategic or financial is an art and requires great resources and experience. Every company is unique and the ability to truly understand and communicate the value of the selling company is an art.