03 Feb, 2022, 09:00 ET
PALM BEACH, Fla., Feb. 3, 2022 /PRNewswire/ -- It is no surprise that plastic surgery has taken center stage as the hot buy for 2022 with private equity firms. Dozens of firms have started platforms nationally and many more are joining the action. We sat down with Samir Qureshi and David C Branch of Viper Equity Partners to get some answers to the most common concerns of the Doctors.
Q: What can a plastic surgery group expect a deal to look like?
Viper: What we are seeing are exciting deals across the board in plastic surgery. A typical deal will be based on a multiple of EBITDA (like net profit). The multiples we are seeing are in the 6x-9x of that adjusted EBITDA which includes doctor compensation. The deals will typically pay 70% cash at close to the sellers and 30% will be rolled into equity in the buying company. These are partnership deals, so the doctors post close are shareholders and owners not employees. The deals can be very lucrative with earnouts, bonus programs and incentive plans.
Q: So, do doctors lose control of their offices and staff?
Viper: Not at all. Post close the doctors will remain in charge of their offices. The buyers do not change the name on the door, terminate staff or in anyway disrupt what is a successful business. They do come to the doctors with capital for expansion or acquisitions and administrative support to give the doctors more free time to use as they wish. The support is all done from a remote location which includes ordering supplies, human resources, marketing, and employee benefits. These are true partnerships with a common goal of growth.
Q: What can the surgeons expect for compensation post close.
Viper: Typically, each doctor will be paid between 40-50% of their personal production. There also can be specific bonus plans for each doctor.
Q: What happens to my staff?
Viper: Nothing. Since the doctors remain in charge of their offices, they make all staffing decisions. Key managers and associates will be given new contracts that will mirror their present contracts.
Q: Why contact Viper?
Viper: It is so important to collaborate with experts in this industry. We started the plastic surgery consolidation in 2017. Fast forward to 2022 we have completed more transactions than anyone and understand every aspect of the space. Experience is key, no question. We have dozens of qualified buyers and sellers waiting and know how to get the deals done.
Viper Equity Partners is a leading sell side Investment banking firm located in Palm Beach Florida that represents Dentists, Plastic Surgeons, Dermatologists and Ophthalmologists nationwide. For more information visit www.Viperequitypartners.com or call 305 988 5945.
SOURCE Viper Equity Partners
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