We start with an introductory call where we learn a little bit about your business and objectives in a transaction and answer any questions you have about us. We understand this conversation may simply be exploratory and does not necessarily indicate a desire to sell. If there is a desire to move forward, we will follow-up with a Preliminary Questionnaire and a Non-Disclosure Agreement.
Our Preliminary Questionnaire is very detailed. We ask for more information upfront so that we can confidently stand behind the offer we make. We are willing to work hard in order to give you a thoughtful offer that you can count on at closing. The last thing anyone involved wants is to have to renegotiate or retract an offer after we have all spent considerable time and effort. Typically, we require one or two calls in order to make sure we are understanding the information you send correctly.
VALUATION & LETTER OF INTENT
We move quickly after receiving your responses to the Preliminary Questionnaire. Our valuations consider many aspects of your practice, not just unit volume and revenues. As a result, our offers reflect a careful evaluation of your business and are less formulaic than manufacturer proposals. We are able to make an offer in only weeks after receiving and discussing the information provided. The offer will be in the form of a detailed Letter of Intent, explaining timing to close, employment terms moving forward and other meaningful terms.
We will not waste your time. We have no desire to go through this process unless genuine interest in your practice. You will deal directly with the decision makers. Our offers are not subject to any third party or behind-the-scenes approval process. We have readily available capital for acquisitions and are eager to continue our growth.
DUE DILIGENCE & DOCUMENTATION
After signing the Letter of Intent, we are able to close in as little as 60 days. This is the result of having done more work upfront prior to making an offer. Our due diligence process begins with access and review of your information systems, follow-up due diligence questions from our lawyers and accountants and a visit and introduction to employees. After a few weeks, you will receive transaction documents including a purchase, employment, and non-competition agreements (if applicable), as well as follow-up due diligence questions from our lawyers and accountants. You will deal directly with the decision makers who meet often to make sure transactions are progressing as scheduled. We are experienced with the acquisition process and have a team dedicated exclusively to completing those transactions.
Most importantly, we understand that you have a business to run and that comes first. You should always operate in the best interest of your practice and patients and we will move at whatever pace you are comfortable with.
HOW TO PREPARE
Before you talk to a prospective buyer, it is a good idea to gather information about your practice and organize it into a presentable easily shareable format (e.g., Microsoft Excel). Information describing the facility, staffing, financial performance, patient base, insurance and devices sold will help a buyer get up to speed and move through the process quickly.
Determine whether you will need special legal, tax or financial advisors and whether they have the appropriate experience and available time. Not having those resources in place often slows down the transaction process.
We take confidentiality seriously and will maintain your information in a confidential, password protected data warehouse. All your information stays within a secure Dropbox that only the small deal team has access to it.
If you do not have information readily available, we will work with you to compile it.
WHAT DOES THE TRANSITION
Owners can choose to stay long term with the company, and we welcome that. We rely on those providers who know their patients the best to continue helping us serve the community. Given the rapid pace of our growth through acquisitions, there are numerous opportunities for growth within the company for former owners.
We have a lot of flexibility with a transition period for former owners. We generally ask owners to continue working with us for a minimum of 6-12 months to help integrate their practice into the HHUSA family.
This is the great story a business owner who doesn’t have to worry about their business anymore can tell. They should be rich, satisfied their clients are well taken care of, and that the process was easy.