Meet Dr. L
Dr. L, a health care provider/partner in a growing private practice, recently received her third private equity practice acquisition inquiry in three weeks. While she and her partners are intrigued by the opportunity to harvest a significant multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization) for their practice, they’re also aware they have numerous considerations to address.
Dr. L has accumulated significant assets (without a coordinated plan), her personal and family expenses weigh on the family cash flow and will not decline for several years, and she only recently started maximizing contributions to her retirement plans.
While the prospect of an acquisition seems appealing, because of the other factors at stake, Dr. L. feels ill-equipped to accurately evaluate the impact this sudden cash event, which would include an employment agreement, will have on her financial life and family responsibilities.