Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits 1
Getting Started Will Melson Bryant Cornett 2
Stay With Us September 5 – Healthcare Private Equity Event Get access to our data portal for clients bryant@dtspade.com Be the first to receive “Process Driven Due Diligence for Healthcare Orgs” Whitepaper wmelson@broadwellgroup.com 3
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits What do leaders within What does it take to win a #1 Culture to win physician-owned organizations #2 Exits not on the map physician-led organization value most? #3 Know when the $ is made deal? #4 Know what to count #5 Low Hanging Fruit Audience Poll 4
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Can you get paid for getting Community EBITDA vs. CAP RATE #1 Culture to win #2 Exits not on the map bigger? Needs Analysis Scenario 2 Scenario 3 Scenario 1 #3 Know when the $ is made $275,000 $275,000 $400,000 Rent $2,000,000 $2,000,000 $1,875,000 EBITDA #4 Know what to count 6x 6x 6x Practice Multiple 6.75% 6.75% 6.75% CAP RATE #5 Low Hanging Fruit $12,000,000 $12,000,000 $11,250,000 Practice Value $0 $4,074,074 $5,925,926 Building Value $12,000,000 $16,074,074 $17,175,926 Total Enterprise Value 8.33% 18.1% % Added Value 5
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Case Studies Making Money Where in the early days is #1 Culture to win #1 Share price increase 177% #2 Exits not on the map Up Front the money made? #2 $280M Healthcare Acquisition #3 Know when the $ is made #3 Imaging Center Acquisition #4 Know what to count Audience Poll #5 Low Hanging Fruit 6
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Case Study One #1 Culture to win Make Money – Integration & Operations #2 Exits not on the map 52 Operating Companies #3 Know when the $ is made 177% Share Price Increase (4 yrs) • 63% Earnings Increase • #4 Know what to count 64% Dividend Increase • #5 Low Hanging Fruit Key Strategies to Make Money Integrate vs Subsidiary • Combine operating companies (Add-on style) • 7
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Case Study Two #1 Culture to win #2 Exits not on the map Make Money or Lose Money in Integration #3 Know when the $ is made 2 Healthcare companies divested from SAME group #4 Know what to count OC #1 OC #2 Integration Team Size (avg) 12 95 #5 Low Hanging Fruit Integration Time (months) 8.5 24+ Integration Cost $8.5M $190M (est) 8
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Case Study Three #1 Culture to win Make Money by Getting Bigger #2 Exits not on the map Purchase 60+ Imaging Centers • #3 Know when the $ is made No “Average Down” Strategy • Keep Key Resources • #4 Know what to count Top Line Growth • #5 Low Hanging Fruit Patient Access 1.5T and 3.0T equipment à more referrals à more $ 9
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits Do you know what Retailization #1 Culture to win #2 Exits not on the map you have? of Healthcare #3 Know when the $ is made #4 Know what to count #5 Low Hanging Fruit 10
Winning in Healthcare: 5 Tips to Landing Deals and Increasing Operating Profits If you bought a healthcare #1 Culture to win organization, where is the lowest #2 Exits not on the map hanging fruit? #3 Know when the $ is made #4 Know what to count Audience Poll #5 Low Hanging Fruit 11
Question Us Will Melson Bryant Cornett 12
Contact Us September 5 – Healthcare Private Equity Event Get access to our data portal for clients bryant@dtspade.com Be the first to receive “Process Driven Due Diligence for Healthcare Orgs” Whitepaper wmelson@broadwellgroup.com 13
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