Is Private Equity Right for Your Practice? Dr. Ben Chudner

Discussion in 'CEwire2019' started by AdminWolf, Feb 28, 2019.

  1. AdminWolf

    AdminWolf Site Administrator & Tech Lead
    Staff Member

    13,492
    Messages
    Joined:
    Feb 24, 2001
    School/Org:
    University of Michigan Medical School
    City:
    Lake Oswego
    State:
    OR


    Watch this video & get up to 56 COPE approved credits at CEwire2019!


    IS PRIVATE EQUITY RIGHT FOR YOU?
    Benjamin S. Chudner, OD, FAAO

    Credit Hours: 1
    COPE ID: 60328-PM

    With private equity spending millions of dollars buying up independent practices throughout North America, it is important to understand if this opportunity is right for you and your practice. This course will review several private equity groups, how optometric practices are valued, and what you can expect from the beginning of the process through the close of the sale.


    Visit CEwire2019.com for more information on how to obtain COPE credit for watching this lecture.
     
  2. AdminWolf

    AdminWolf Site Administrator & Tech Lead
    Staff Member

    13,492
    Messages
    Joined:
    Feb 24, 2001
    School/Org:
    University of Michigan Medical School
    City:
    Lake Oswego
    State:
    OR
    Thanks again to Ben for putting this together -- it was an eye-opening lecture (no pun intended...)

    ad
     
  3. AdminWolf

    AdminWolf Site Administrator & Tech Lead
    Staff Member

    13,492
    Messages
    Joined:
    Feb 24, 2001
    School/Org:
    University of Michigan Medical School
    City:
    Lake Oswego
    State:
    OR
    One of the difficult issues with PE is that so many people who have been approached (or have sold) are bound up by NDAs, so they can't discuss the process, or how the deal concluded.

    It is a shame, because this is really one situation where 'going it alone' when negotiating could cost docs in a big way.
     
  4. Benjamin Chudner

    Benjamin Chudner Active Member

    334
    Messages
    Joined:
    Feb 9, 2005
    School/Org:
    UC Berkeley School of Optometry
    City:
    Victor
    State:
    NY
    Once an NDA is signed as part of the letter of intent (LOI), the PE group should allow the potential seller to discuss the process and post-close life with other doctors that have sold to the group. If they don’t, you need to ask yourself what they are hiding.
     
  5. AdminWolf

    AdminWolf Site Administrator & Tech Lead
    Staff Member

    13,492
    Messages
    Joined:
    Feb 24, 2001
    School/Org:
    University of Michigan Medical School
    City:
    Lake Oswego
    State:
    OR
    Right, but what about doctors who haven't yet sold -- ie, the people who are probably most concerned about what life is going to be like...

    thanks!
    ad
     
  6. Benjamin Chudner

    Benjamin Chudner Active Member

    334
    Messages
    Joined:
    Feb 9, 2005
    School/Org:
    UC Berkeley School of Optometry
    City:
    Victor
    State:
    NY
    Those doctors would get to speak to doctors that had sold to find out what life might be like, but only after the NDA is signed. We encourage potential sellers to speak to our doctors that have sold once the LOI is signed. The LOI is necessary to begin due diligence for both parties, but does not mean a sale has to go through.
     
  7. Gretchyn Bailey

    Gretchyn Bailey ODwire.org Supporting Member

    2,049
    Messages
    Joined:
    Jan 18, 2001
    School/Org:
    Optometry Times
    City:
    Lansdale
    State:
    PA
    That's exactly what I was going to ask...what about those who have NOT sold to that group?
     
  8. Benjamin Chudner

    Benjamin Chudner Active Member

    334
    Messages
    Joined:
    Feb 9, 2005
    School/Org:
    UC Berkeley School of Optometry
    City:
    Victor
    State:
    NY
    I guess if they could find those that didn’t sell, they could speak to them. The NDA we have in place makes it so we cannot tell other people who chose not to sell to us.
     
  9. James Jordan

    James Jordan Well-Known Member

    4,894
    Messages
    Joined:
    Mar 7, 2002
    School/Org:
    University of Houston College of Optometry
    City:
    Erie
    State:
    CO
    Why wouldn't it be a good deal? You sell. You work for 10 more years and don't have to make the decisions. Relax. If you hire an attorney that has done PE deals, they will tell you something the doctors don't know. That's the deal, in the agreement.
     
  10. Benjamin Chudner

    Benjamin Chudner Active Member

    334
    Messages
    Joined:
    Feb 9, 2005
    School/Org:
    UC Berkeley School of Optometry
    City:
    Victor
    State:
    NY
    There are multiple factors to consider when evaluating a deal. I cover this in detail in my CEWire presentation.