The healthcare industry is growing fast and is attracting many investors, including private equity firms. Most healthcare practices need advanced medical equipment to serve their clients better. However, some of these facilities don’t have enough funds to acquire the equipment and even to hire experienced professionals. Others struggle to make money or even pay their staff. And that is why they need investments from healthcare private equity firms or investors willing to put their money in the facilities to support them, and in return, make money.
Healthcare private equity transactions are complicated. A firm or investor might be willing to acquire the entire facility, while others might want to acquire shares in the business. Other transactions involve merging two or more healthcare practices. Read on to learn why you will need an experienced private equity lawyer when handling such transactions.
Structure the Funds and Negotiate on Your Behalf
When a healthcare private equity firm or investor wants to acquire shares or an entire healthcare practice, a lot of money is involved. If you are an investor or a part of a private equity firm, you may not have the time and expertise to structure the fund and negotiate for a fair deal with the healthcare practice. And that is why you will need an experienced private equity lawyer to handle the transaction.
The lawyer will talk with you and then meet with the other team. They will listen to what they want and how much the facility envisions to get to close the deal. Your lawyer will tell you what the other party expects and the terms of engagement. You will tell them how much you are willing to invest in the deal and the lawyer should prepare an offer based on your terms. They will present the offer to the other party and negotiate a fair deal. This ensures that a deal is agreed upon more quickly and your interests are considered.
Prepare and Review the Contracts/Agreements/Documents
You may not have the expertise to prepare a contract, agreement, or documents to acquire shares of a healthcare business, merge healthcare practices or acquire an entire healthcare facility. And that is where a healthcare private equity attorney comes in. The lawyer will help prepare all the documents you need to acquire shares or buy an entire healthcare practice. They will also help you prepare agreements you need to merge healthcare practices.
When you have well-crafted private equity transaction documents, there is a high chance of completing the transaction smoothly and quickly. However, if you handle the transactions on your own, you will likely make errors or mistakes that can ruin the deal or delay the acquisition. So to ensure a smooth and fast transaction, let a lawyer prepare and review transaction documents for you.
Guide You Throughout the Transaction
There are many processes involved in buying shares of a healthcare practice or other private equity transactions. Before you acquire shares or an entire entity, you need to know its real value and how much you will get in return in the short- and long term. You need to do due diligence to ensure that you get it right at every step of the transaction.
But you don’t have to stress yourself with too much research and due diligence. Your healthcare private equity lawyer will handle the transaction and guide you throughout the entire process. As a result, you will not make mistakes and lose money in the process. In addition, you will have peace of mind when you let an experienced attorney guide you and handle the transaction.
There are many state and federal regulations governing acquisition, merging, and even buying shares of healthcare practices. If you don’t abide by the rules or regulations, the transaction can be challenged in court and you may be liable for damages and losses, if found guilty. And this is likely to happen when you rush the transaction and do it on your own.
When you hire a competent private equity lawyer, expect the transaction to be done by the law. The lawyer will also review tax details, check the business structure and formation, and compliance based on company and contract laws to ensure everything is done correctly.