With private equity investment in ASCs on the rise, there are a number of factors to consider when deciding to sell or not, according to the Outpatient Ophthalmic Surgery Society.
Six pros and cons:
Pros:
- Monetizing equity. When a private equity firm buys an ASC, it gives provides the opportunity to monetize equity.
- Opportunities to practice. Administrative changes taking place after a private equity firm buys an ASC means physicians' day-to day activities may be more focused on performance.
- Bulk payments. ASC owners receiving an upfront payment for the sale of the practice can use the funds to help meet financial goals, like retirement.
Cons:
- Lower profits long term. When selling to a private equity firm, physicians and other owners sell a percentage of the profits as well.
- Loss of control. Once an ASC is sold to a private equity firm, the culture and success of the center can change.
- Brief partnerships. Private equity firm investments last for a short period of time, ending in a sale to another firm.