The Corner Series Prospering in the Healthcare Market: Investment Outlook, With Diwakar Sinha
The healthcare market may be tumultuous these days, but deals are still happening.
On this episode of The Professor’s Corner, Diwakar Sinha of Polaris Healthcare Partners joins McGuireWoods’ Geoff Cockrell to discuss how practices can prepare to sell, what specialties are especially attractive, and how the search for investors varies from practice to practice.
According to Diwakar, the same volume of deals are occurring, but the number of A-grade deals may be fewer. Currently, most A-grade deals exist in certain specialties.
Diwakar recommends that group practices run a quality of earnings (QOE) analysis to firm up their EBITDA projections. This eliminates some of the doubt for investors and makes a deal more appealing.
Diwakar also predicts that the cost of capital will come down mid-2024, which is a good reason to start planning from the sell-side now.
On the consulting side of Polaris Healthcare Partners, Diwakar shares that for a practice to engage Polaris Healthcare Partners, it typically needs seven to 10 locations with aspirations to grow. At that point, the leadership team needs to expand to include a CFO and a more robust accounting team.
Tune in for more on current trends in healthcare group practice investing.
Featured Guest
Name: Diwakar Sinha
What he does: With about 22 years of experience in healthcare lending and transaction services, Diwakar is a Co-Founder and Partner at Polaris Healthcare Partners. Polaris provides consulting services to healthcare group practices across all specialties, as well as capital and sell-side advisory.
Organization: Polaris Healthcare Partners
Connect: LinkedIn
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