888-983-1617 [email protected]

How Oaklyn Consulting Worked with Physicians Toward an M&A Solution – Or Not

We pride ourselves on helping clients reach a ‘no-deal’ solution when it’s right for them. That was the result of our recent work with a family medicine practice. Here’s the story in 5 steps:

  1. A practice was approached by a ‘roll-up’ practice which had recently acquired several similar doctor offices.
  2. After an initial conversation, the doctors and their lawyer asked us to help them organize their response to an information request that would lead to an offer to buy the practice.
  3. To help the doctors understand what they would be communicating to the potential acquirer, we gathered and analyzed all the financial and operational information requested by their suitor. And we did this with the information:
    • Showed the doctors what their practice would look like to a financially-minded acquiring practice.
    • Highlighted data that would create headlines for an acquiror — trends, risks, easy improvement opportunities.
    • Highlighted for the doctors how to distinguish their income as ‘professionals’ and as ‘owners’ of their practice.
    • Quantified the differences — good and bad — among each of the business scenarios practically available to them. In this case, the options were (1) sell to the roll-up practice; (2) sell to the local hospital; and (3) stay independent. This way, the doctors could tell a fair offer for their practice from an unfair one.
  4. We packaged and sent the information to the suitor, and while they were digesting the information, we engaged the doctors in a conversation about how they would make a decision when an offer came back. We discussed all the possible criteria for determining the future of their practice — individual needs, family needs, group needs, reputation, mission, taxes (with help from the practice accountant and lawyer), work environment, employees, each doctor’s health and productivity, etc.
  5. An offer came back from the suitor. It was fair — the financially-minded suitor thought so, we thought so, and the partners in the practice thought so. The doctors considered this offer and their other options. The doctors’ conclusion: “In light of this being a fair offer, we value our autonomy more than the money. We pass on the deal and want to stay independent.”

We helped the client better understand:

  • The practice as a business, as an investor would see it.
  • The strategic business choices available to them.
  • How the partners might make a decision together about the future of the practice.
  • How to consider all the relevant criteria, without pressure to do a deal or sell out.

If this story seems relevant to someone you know, please call.

Is Now The Right Time To Sell My Business?

Ask Us Anything Dear Oaklyn Consulting, For the last five years, I’ve been making 65% to 75% gross profit. I know in the next few years, gross profit is going to shrink because of new competition coming into the market. What advice do you have for me to consider...

How to Navigate Business Debt and Equity Options

When closely held businesses need capital, they generally have two options — getting a bank loan or seeking out private investors. While a loan isn’t going to be a viable solution for every liquidity need a business has, it can be significantly less expensive in the...

Help Me With a Conflict in My Family Business

Ask Us Anything Dear Oaklyn Consulting, Three members of our family business (a father and two sons) are not getting along. The father isn't retiring and wants to control the business, while the sons would like to sell the business. What advice do you have for the...

Help Me With a Succession Plan

Ask Us Anything Dear Oaklyn Consulting, It’s been a really hard year. I own a business that I’ve been successfully running for the last 15 years. I’ve had some health troubles that have pushed me to a position where my doctors are suggesting that I need to retire...

Can a Nonprofit be Acquired by a Corporation? 

Can nonprofits be acquired by corporations? Is it a good idea for for-profit businesses to acquire nonprofits? Learn everything you need to know.

Venturing into Capital: Understanding Small Business Private Equity  

Explore small business private equity and all of its alternatives to reach new heights for capital in your company.

Help Me With Acquiring a Business

Ask Us Anything Dear Oaklyn Consulting, I am a business owner who has a substantial local presence. I’m considering acquiring a competitor that has a larger presence outside my current market. This move would expand our footprint immediately and give us the...

How to Merge Nonprofits: Acquisition, Stakeholders, Post-merger Integration, and More

Merging nonprofits is not as hard as it sounds. Just make sure goals are aligned, assets are well assessed, and that you have the right advisors by your side.

Oaklyn Consulting Congratulates Finite Reimaging on Acquisition by CAMP Construction Services

Oaklyn Consulting helped AMP Construction Services acquire Finite Reimaging. Learn it all here.

Help Me Develop a Sellable Asset

Ask Us Anything Dear Oaklyn Consulting, I don’t know if it’s the economy or the time of year, but it feels like every time I turn around, there is another M&A firm calling to see if I am in the market to sell my small business. I know that this is something that I...