If you are searching for experienced, proven attorneys for the acquisition of a medical practice in San Diego and Southern California we invite you to consider the medical and healthcare business attorneys at the Watkins Firm. We have more then 40 years of experience in Mergers and Acquisitions (M&A) in the healthcare sector and provide extensive legal advice, counsel and services from the outset of the project through the date of the completed transaction and beyond.
Acquiring a Physicians Practice is More Complex than Most Other Types of Businesses
The process of acquiring a physicians practice or preparing one for sale is more complex than most other types of business acquisitions, mergers or sales. From the outset, the schedules of the primary stakeholders and their responsibilities to patient care and associated chart and records management can extend the normal timeframe of an acquisition. From a buyer’s perspective, one must give consideration to the perspective of the potential for varying classes of ownership in the target practice and their collective and individual interests. The process of due diligence is always detailed and complex, and this is substantially more complex when dealing with a medical practice or healthcare entity. One must consider not only the practical business issues such as the structure of the entity, the books and associated goodwill, but the contingent liabilities associated with the complex laws and regulatory compliance associated with a medical practice.
A Complex Mergers and Acquisitions Process
The steps associated with the acquisition of a medical practice in San Diego and Southern California essentially come down to the provision of a Letter of Intent (LOI), Due Diligence, Additional Negotiations, Preparation and Execution of Associated Documents and the Management of the Obligations of Each Party after the transaction is consummated.
The healthcare and medical business attorneys at the Watkins Firm have decades of experience managing and advising each step of the process, as well as the seemingly endless checklists associated with each sub-task. Generally speaking, the Letter of Intent in the acquisition of a medical practice should be designed to get the seller under exclusivity for the buyer and to open discussions regarding details concerning every aspect of the transaction from valuation, preservation of existing employment agreements (if applicable), preservation of Goodwill during, through and after the transaction as well as specific terms of the acquisition agreement.
Due diligence comprises not only inspection of all existing books, billing, coding and tax records, Electronic Records Management (ERM) as well as assets and obligations, but extends to investigation of potential regulatory compliance issues, the option of Representation and Warranty insurance, and an analysis of risks associated with regulatory violations, abuse and/or fraud. Due diligence extends to employee contracts and benefits, existing corporate contracts, real estate, inventory and intellectual property.
One of the most common issues during the preparation and execution of associated documents is “rollover equity” to ensure stakeholders remain engaged in the practice during and after the transaction to ensure transfer of associated goodwill. The transaction documents must be carefully structured based upon the specifics of the deal itself, tax implications, warranty and indemnification, restrictive covenants, insurance and financing.
Once the transaction is completed notice must be provided to various governing agencies, licensing authorities and payors alike.
Experienced, Proven Attorneys for the Acquisition of a Medical Practice
The Watkins firm have an extensive track record of successful medical and healthcare M&A transactions. You can trust our experienced, proven attorneys for the acquisition of a medical practice or healthcare business in San Diego or Southern California.
We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
