Stock Transactions vs. Asset Sales - The Ambulatory M&A Advisor

"Ambulatory care center transactions would seem more elusive than ever, given the competing interests as buyers and sellers haggle over the structure of the deals.

But they aren’t.

Whether structured as stock transactions or asset sales, the deals are getting done at a healthy clip, industry watchers report.

Among the deal drivers is the desire of hospital health systems to acquire physician-owned ambulatory care centers to position themselves to prosper under the Affordable Care Act (ACA). This gains them payment models that under the ACA reward use of outpatient services.

On the seller’s side, physician owners want the significantly higher reimbursements hospital health system ownership offers. A further incentive might come from concern that today’s transaction prices could recede, as managed care companies insist on more moderate reimbursements to hospital care companies.

As motivated buyers and sellers come to the table, each wants a specific deal structure: Sellers typically want a stock sale and buyers an asset sale, attorneys Ira Coleman and John Fanburg say.

The ease of a stock sale and the rapid progression to closing appeal to sellers while the certainty of taking on only vetted assets attracts buyers to asset sales. Licensing and patent transfers and tax implications also figure prominently in deal structure preferences."

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.