The landscape for healthcare services transactions is shifting rapidly. With heightened regulatory pressure, prolonged diligence timelines, and evolving value-based care models, preparation has become the defining factor between a smooth, high-value deal and one that stalls — or loses value.
During the recent “Ready to Deal” webinar, experts from HCVT, Oppenheimer & Co., and Sheppard Mullin shared what provider groups need to know before raising capital or selling.
Here are the five biggest insights leaders should take away:
1. Early Preparation Directly Impacts Valuation
Organizations that invest in readiness — structure, financial clarity, and clean compliance — command stronger deal terms.
“The deal that you end up with is derivative of the preparation that you’ve done.”
— Aytan Dahukey, Sheppard Mullin
Buyers don’t want to uncover major issues during diligence — especially when they could have been resolved upfront.
2. Physician Alignment Must Be Resolved Early
“There needs to be a proper alignment of the operating and non-operating entities.”
— Neal Sheth, HCVT
Misalignment around compensation, rollover equity, and retirement creates internal friction mid-deal. Getting everyone “rowing in the same direction” is foundational — and often overlooked.
3. Billing, Coding & Tax Exposures Can Erode Deal Value
Even minor issues can snowball into lost time and lost dollars once diligence begins. One notable example had $500K in billing errors, which snowballed into more than $1M after legal fees and delays. A proactive audit is far cheaper than reactive remediation.
“You’ll end up with a purchase price adjustment… or a significant holdback for taxes, which is what we’re trying to avoid.”
— Kayla Hong, HCVT
4. Regulatory Scrutiny is Increasing
New state-level and federal oversight of private equity and non-physician investment is reshaping the buyer universe. Limited buyers = lower competition = downward pressure on valuations.
5. Value-Based Care Still Has Long-Term Promise — But Results Must Be Proven
Investors are still bullish on value-based models with demonstrated performance in medical margin management and analytics.
“Providing real savings to the healthcare system is still bullish and a long-term view.”
— Neal Sheth, HCVT
Organizations that show data-driven performance in risk-sharing contracts attract the strongest valuations.
The Bottom Line
A successful transaction demands:
Provider groups that invest in readiness now will be best positioned to capitalize when market conditions accelerate.
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Our passion for excellence, continuous learning, and improvement have garnered HCVT numerous industry accolades. These honors demonstrate the firm’s focus on client service and commitment to maintaining a supportive, employee-centric culture.
