By all accounts, 2019 proved to be another year of significant investment by private equity firms in the physician practice space. Below we discuss 10 trends we observed as counsel on a number of these transactions during 2019 that bear tracking in 2020.

1. Managing Physician Buy-In Has Proven to Be Key.

The ability of investment bankers and private equity firms to manage physician buy-in on the front end of a transaction is key to completing the deal, particularly in transactions involving a large physician shareholder base. Transactions that did not go to market or that have been put on hold were often the result of a lack of clarity by the physicians regarding post-closing operations and earnings over the life of the investment and eventual exit. It is crucial to identify the right champions and leaders in the practice to help drive consensus and ensure a more efficient process – ideally before you commit substantial time, money and resources.