After an active 2022, this year has seen a shift in the professional practice model space, with new challenges around the cost of capital, pricing and labor. Some who raised a lot of capital in 2022 will still be looking for deals, while others will focus on valuation and financial performance.
On this episode of The Corner Series, McGuireWoods’ Geoff Cockrell sits down with Robert Aprill, managing director at Physician Growth Partners, to discuss how the market might evolve in 2023 and beyond.
The aftermath of COVID-19 led many business owners to reevaluate the importance of size and scale in their operations, leaving them more open to partnering with larger entities. In private equity, an adviser’s role is to educate clients about compensation and alignment options when considering partnerships with healthcare platforms. The focus is on ensuring that physicians are partners and are compensated based on performance, promoting alignment through incentives rather than punitive measures like production thresholds.
“We spend a lot of time with our clients. I think oftentimes with us, we’re presenting something versus having buyers present something to us,” explains Robert.
The episode also covers areas of consolidation, interest in niche specialties, and aligning equity with compensation.