To sell or not to sell: considerations when evaluating private equity acquisitions.

Abstract

Many private practice ophthalmology groups are considering a partnership with private equity. When evaluating whether to remain independent or to engage an equity partner, practice leaders must analyze their existing practice, address issues of equity transitions, management, and governance, and determine strategic goals. This paper discusses the factors that need to be considered when evaluating the possibility of an acquisition model. When considering a partnership with private equity, a thriving and mature private practice must conduct an in-depth analysis of four factors: how to transition the equity of a mature practice, how to continue growth, how to manage an increasingly complex organization, and the after-effects of a sale. These same issues must be addressed whether the group decides to pursue private equity or decides to remain independent.