Buy-Side Engagements

Case Study 2

IBP is frequently involved in buy-side engagements in medical practice/facility transactions, and provides a uniquely valuable hybrid service. By combining traditional legal and financial/valuation service, the firm is positioned to offer precisely tailored advice, particularly with regard to converting financial due diligence to valuation analysis. This can result in both rejected transactions and completed transactions at materially lower prices.

A group of physicians engaged IBP to help purchase a Las Vegas-based ambulatory surgery center. Following the diligence hastily delivered by an exceptionally difficult seller, IBP determined that the asking price-for which the potential buyers had already secured financing and approval-was far too high. Enduing three separate deal "terminations" by seller, IBP secured a 10 percent reduction in the purchase price, and favorable material terms added to the definitive documents.

IBP secured a 10 percent reduction in the purchase price, and favorable material terms added to the definitive documents.

Then there was the case of a local surgeon who was approached by a colleague in the same field to purchase his practice. The parties settled on a putative purchase price and IBP was engaged to conduct both diligence and the substantive legal transaction.

Following diligence requests and repeated delays and bullying from opposing counsel, we ultimately discovered that the proffered practice held substantially less value than was being demanded. IBP helped the buyer develop alternative strategies that allowed him to avoid what would have been a disastrous transaction with a fraudulent seller, and undertake much more efficient transactions with the time and money he saved.

Finally, a Nevada-based physician came to us after being solicited by a business broker regarding a pain management practice for sale in Ohio. The outgoing doctor was willing to help with transition, but not for more than two days per week. The sale price was agreeable to both parties, but with IBP's analysis, it was determined that revenues from the business likely would not have represented enough to justify the sale.