The HPS Platform

HPS has signed over 1,000 buyers onto their platform who have been vetted and who have interest in acquiring or investing in healthcare practices. All buyers have paid a fee to HPS to be on their platform. Once completed, your practice profile (regardless of the size or profitability of your practice) will be placed anonymously on the platform and will be reviewed by over 1,000 buyers. If you go through the process, you WILL receive offers and those offers will appear on your personal (username and password protected) dashboard.

Do What Is Necessary To Complete Your HPS Profile. Evaluate The Offers Received On The HPS Platform. Use Your Completed Profile To Obtain Offers Off The Platform As Well. Choose The Offer That Makes The Most Sense For You And For Your Practice.

The offers received on the HPS Platform will come from a wide range of buyers and will include different acquisition structures.

Use Your Completed Profile To Obtain Offers Outside The HPS Platform

The completed profile is your property and you can use the completed profile to attract offers for your practice outside the HPS platform as well. We are being approached on a weekly basis by buyers interested in healthcare who have not joined the HPS Platform. They are also interested in evaluating the completed HPS profiles. If you have your own buyers, you can use your profile to present to those buyers in an attempt to increase the value of their offers.

Buyers “off the platform” are generally interested in obtaining groups of practices that they buy for a multiple of “x” and then resell to either private equity or to the public markets for a much higher multiple. Many are structured so the seller receives a multiple at close and can then share in the “spread” received when the group of practices is resold (and potentially resold again).

A Practice Profile Of This Quality Is Not Available Through Any Other Source.

The completed practice profile produced by HPS is unique, proprietary and is not available anywhere else. You could try to contact Goldman Sachs directly but that is not realistic. HPS is unique in their positioning.

Will The Seller Need To Approve The Growth Plan Prior to Accepting An Offer?

Yes. The Seller, under all models, will be required to stay affiliated with the practice for a minimum of 12 months. The Seller will be paid a higher multiple if they are willing to stay longer and participate in the growth plan of the practice. The growth plan is created based on responses provided by the Seller during the process of creating the practice profile and the Seller will have to agree with the growth plan proposed by the buyer as a condition of sale.

The Growth Plan Of The Practice Will Be Achieved Primarily Through Ancillaries.

The HPS model protects the Doctor's time and seeks to have the Doctor maintain their same level of patient interaction through the post-sale growth plan. Every growth plan is different, but practice growth (resulting in the desired ROI) will be achieved primarily through ancillaries.

A Completed HPS Profile Is The Key To Unlocking Multiple Doors

The “key analogy” is useful. If you are considering selling your practice, you have probably been approached by prospective buyers such as another Doctor, hospital, DSOs or MSOs and it is unlikely that you will receive a high multiple for your practice. A completed HPS practice profile is like a key that will open multiple doors through which you will receive substantially more for your practice and will be acquired through various acquisition structures.

Behind one door (that the key will open) is a room containing the HPS platform on which your practice will be anonymously placed to be reviewed by over 1,000 vetted buyers. Any Doctor on the platform will receive multiple offers. You can’t unlock this door without the HPS key (the completed HPS profile).

Behind another door (that the key will open) is a room with buyers off the HPS platform who also want to review the completed practice profile. They will, in most cases, offer inclusion in group sales that have the potential for several multiples and a higher cumulative sales price. You can’t unlock this door without the HPS key (the completed HPS profile).