Transaction Readiness Assessment (TRA)
A practice sale transaction can be an exhaustive and resource-intensive process. Knowing what to expect and preparing for an orderly sale process in a healthcare transaction is an essential first step. Root’s proprietary Cultivate™ TRA has been developed over many years and through involvement in dozens of healthcare transactions and will include the following primary analyses:
- Seller Goal and Objective Review
- Prospective Buyer Profiling
- Multi-year financial and “volume driver” trend analysis
- Identification of appropriate normalization adjustments
- Preparation of multi-year projections and key assumptions
- Preliminary market pricing guidance
- Information “gap” analysis
- Guidance on legal representation
- Identification of action items and preparation of TRA Plan
Sell-Side Advisory
Whether you have identified a prospective buyer for your practice or already or want to engage in a broader, more traditional “sell-side auction” type of process, our professionals will actively manage the practice sale process from start to close. Physician sale-side services may include the following:
- Preparation of transactional marketing documents (e.g., Confidential Information Memorandum)
- Preparation of Transaction Readiness Assessment, to the extent not performed previously
- Identification of strategic and financial buyers
- Marketing your practice to pool of potential buyers
- Managing initial bid process and provision of term sheets
- Liaison between pool of potential buyers and seller in coordinating and responding to supplemental information requests
- Coordinating and overseeing management interviews
- Final buyer selection and negotiation of Letter of Intent
- Working with legal counsel, seller, and seller’s other experts in responding to due diligence requests and negotiating final definitive purchase agreements
Buy-Side Advisory
Leveraging nearly fifty years of combined healthcare transaction advisory experience, our healthcare industry roots run deep. We’ve worked with physicians and physician groups on countless transactions in dozens of markets. We believe the first and most important part of any successful merger or acquisition is pairing the right right buyer with the right seller.
Our buy-side advisory services may include the following:
- Industry opportunity analysis
- Networking and identification of prospective leads
- Lead investigation and qualification
- Multi-year target financial and “volume driver” trend analysis
- Target valuation and pricing assistance
- Working with buyer and buyer’s representatives in coordinating due diligence requests and performing appropriate financial and operational due diligence
- Providing ready accessibility and counsel to client at every step of the process
Valuation Services
Healthcare leaders need timely, relevant, and reliable analysis to support business decisions. The experts of Root Partners work closely with health system executives, physicians, health lawyers and business owners to understand their goals and objectives, identify key value drivers and risks within a subject business or service line, and provide actionable and compliant valuation solutions to a broad spectrum of transactional needs.
- Valuation for Business Transactions
- FMV Opinions for Physician and Administrative Compensation
- Management Services Agreements
- Assessment of Economic Damages in Legal Disputes
- Strategic Value Consulting