Buying or Selling a Healthcare Business

If you are planning on buying or selling a healthcare business, either process will require careful attention to detail, compliance with various state and federal regulations, and legal counsel you can trust to guide you through the process. Buying or selling any business requires legal oversight from an experienced attorney, and this is especially true in the healthcare industry.

Legal Counsel for Buying or Selling a Healthcare Business

The attorneys at Boesen & Snow Law have more than 45 combined years of professional experience in state healthcare law and pharmacy law. Our team has helped many clients in the healthcare sector with a wide range of complex legal procedures, including buying and selling businesses. Whether you aim to sell the business you currently own or intend to purchase a new healthcare business, we can help.

You will require legal counsel not only for the transaction itself but also after the transaction is complete. Selling a healthcare business will require extensive contract development and review, and it is vital to take various financial implications into consideration. If you are buying a business, it is an even more extensive process, and your attorney can help address the various regulatory issues you are likely to face as a healthcare business owner.

Boesen & Snow Law provides client-focused legal counsel for all types of business transactions in the healthcare industry. If you are selling your business, we can help ensure it is valued appropriately and you secure maximum return on your investment. When purchasing a new business, our team has the skills and experience necessary for you to approach the legal implications of the purchase with confidence and peace of mind.

Buying and Selling Different Types of Healthcare Businesses

The healthcare industry is multifaceted when it comes to the various different types of businesses operating in this sector. Buying or selling a healthcare business will require careful attention to various details depending on the type of business involved in the transaction. At Boesen & Snow Law, we can help with the purchase or sale of various types of healthcare businesses, including:

• Pharmacies. This type of healthcare business involves the purchase, storage, handling, and sale of many types of controlled substances and highly regulated drugs. Our firm can assist you with handling the disposition of controlled substances and the various licensing requirements you will need to meet.
• Medical treatment centers. Whether you are buying or selling the assets of a medical treatment center or the ownership interest in the medical business is involved in the transaction, our firm can assist you in ensuring a fair sale that adheres to all applicable state and federal regulations.
• Mental and behavioral health centers. This type of healthcare business is subject to specific regulations at various levels. Whether you are buying or selling a mental and behavioral health treatment center, we can provide oversight for the transaction to help you meet your goals.
• Senior care facilities. Our team can help assess the value of a senior care center you intend to purchase, and we can assist with the sale of an established business to assist you in securing a favorable price.
• Healthcare technology companies. Any company that develops healthcare technology is subject to rigorous industry regulations, inspection requirements, and operating rules. Our team can help ensure that a business you intend to purchase does not pose any future liability risk; we can also assist with the sale of your current healthcare technology enterprise.
• Drug manufacturers. This industry is one of the most heavily regulated industries in the country, beholden to many rules under the Food and Drug Administration (FDA) and various other state and federal agencies. We can assist with the purchase, sale, or merger of a drug company.
• Medical billing companies. Many healthcare organizations outsource their billing to dedicated medical billing companies. We can help our clients ensure compliance with all applicable laws and regulations and help them address any foreseeable contract-related issues that might arise in these transactions.
• Medical supply companies. The medical supply industry is also subject to strict regulation. Boesen & Snow Law can help assess whether a company you intend to buy is a solid investment, and we can assist with the sale of your current company, resolving any related legal issues that arise that you cannot resolve on your own.
• Medical Device companies. Medical devices, regardless of whether they are combined with a drug or used to administer a drug, are complicated business transactions.  Sellers may not always have the required permits.  Boesen & Snow is especially well suited for assisting the seller or the buyer with the diligence list necessary for a smooth transaction.

Whenever you intend to buy or sell a healthcare business, there are many legal implications involved in the transaction that you must properly address. Selling a healthcare business without legal counsel on your side leaves you vulnerable to undervaluation and a smaller sale price than you deserve. Conversely, buying a healthcare business that may have hidden legal risks can be incredibly damaging, and the right attorney can help identify these issues before committing.

Boesen & Snow Law excels at resolving complex business transactions in the healthcare sector. Our team not only has extensive professional experience in healthcare law but also practical experience in the healthcare field. We not only assist our clients with their legal concerns when buying or selling healthcare businesses but can also help them develop their healthcare businesses in various ways.

Understanding the Different Types of Healthcare Business Sales

Buying or selling a healthcare business is a complex process, and it is possible for this transaction to unfold in various ways. If you are selling your business, your attorney can help determine which type of sale would suit your interests. For example, if you do not wish to continue your involvement in the day-to-day operation of the business but want to retain your ownership interest, an asset sale is likely the most viable option.

During an asset sale of a healthcare business, the owner sells their patient list, equipment, inventory, and operating assets, but they retain their ownership interest in the business. This can allow the owner to retain their position as the owner, but they also retain their responsibility for all the business’s remaining liabilities.

If the business owner wishes to completely exit the business and have no further involvement with its operations, then an ownership interest sale is the preferred option. With this transaction, the buyer is not only purchasing the assets of the business but also ownership interest and responsibility for the business’s outstanding liabilities. The buyer will need to go through the process of transferring ownership through the state and obtain all required licenses.

It is also possible to effectively buy or sell a healthcare business through a merger. In this transaction, one of the parties essentially absorbs the other, and the transaction may unfold through the cash purchase of one of the businesses or an exchange of stock. A merger is likely to go through only if it benefits both of the parties involved.

Considerations for Selling Your Healthcare Business

If you plan to sell your healthcare business, you face the challenge of not only determining the type of sale you wish to conduct but also finding the right buyer. A strategic buyer is one in the healthcare industry typically looking to expand their operations in your area. Corporate buyers may be able to offer a higher purchase price, but they may also impose restrictions or requirements that you find unfavorable in the future.

It’s also vital to consider that certain buyers may only be interested in certain types of sales. For example, you may wish to conduct an asset sale and retain your ownership interest but struggle to find a buyer amenable to this arrangement. If you wish to exit the business entirely, you might have trouble finding a buyer willing to offer the right price.

Considerations for Buying a Healthcare Business

If you intend to purchase a healthcare business, you will not only contend with the transaction itself but also various other regulatory requirements following the sale that you must meet so you can begin operations. Depending on the type of business you intend to purchase, you may require various permits and licenses at the state and federal levels, and you will need to ensure you meet all applicable regulatory requirements.

Your attorney can help you understand the implications of your intended purchase and assist you in completing all necessary preliminary steps. Boesen & Snow Law can help with the valuation of an intended business so you are confident the price is fair; we can also explain the various regulatory and licensing requirements you will need to fulfill to actually conduct business once the transaction is complete.

What to Expect from Our Team

During an initial consultation with the attorneys at Boesen & Snow Law, our firm can carefully review the details of your intended transaction and explain the various legal services we can provide to make it happen in an efficient manner. You can rely on us for contract development and review, ensuring the purchase agreement meets your needs and expectations, and resolving any issues that might arise concerning the valuation of the business.

Boesen & Snow Law is ready to extend the full scope of our medical and legal experience for you for buying or selling a healthcare business. You can trust our team for every element of the transaction on either side of the table, so reach out to us as soon as possible to learn how we can help you accomplish your goals.

FAQs

Q: How Do I Sell a Healthcare Business?

A: Selling a healthcare business can be more complicated than selling any other type of business due to the extreme level of regulation applicable to the healthcare industry. You need to find a buyer, determine the type of sale you wish to conduct, and then perform an accurate valuation of your business to ensure a fair price. Your attorney can guide you through these steps and help you complete the sale efficiently.

Q: How Do You Value a Healthcare Business?

A: Accurate valuation of your healthcare business depends on the type of sale you are conducting. For example, if you plan on an asset sale, it will entail your patient list, equipment, and commercial property. The buyer purchases these assets but not ownership interest. In an ownership interest sale, the buyer also purchases the ownership interest of the business. Your attorney can be invaluable for accurate valuation of the type of sale you intend to conduct.

Q: Is Healthcare a Lucrative Business?

A: Healthcare can be a very lucrative sector, but every type of healthcare business faces many unique challenges not found in other industries. There is a balance between operating costs and the constant demand for healthcare services in the United States. While the healthcare sector may not report profit margins seen in other industries, there is almost never a shortage of patients requiring healthcare services, so a properly run business can operate almost indefinitely.

Q: Why Do I Need a Lawyer to Buy a Healthcare Business?

A: When you purchase a healthcare business, this process involves much more than just the transfer of ownership of the business assets. You face different considerations depending on whether you are doing an asset purchase or buying the ownership interest in the business, and you must meet various licensing and compliance requirements to conduct your operations. Your attorney can help you address all these issues with confidence.

Q: How Long Does It Take to Buy or Sell a Healthcare Business?

A: Any type of business acquisition or sale can be a complex and multifaceted process. Some of these transactions are more straightforward than others, but any type of buying or selling of a healthcare business is likely to raise difficult questions you may not be able to answer on your own. When you work with a seasoned attorney, they can provide the guidance you need and help streamline the transaction as much as possible.

The attorneys at Boesen & Snow Law have years of professional experience handling a wide range of complex transactions involving the buying and selling of healthcare businesses in Arizona. If you plan to conduct any such transaction in the near future, we can provide the legal representation you need to complete the transaction successfully. Contact us today to schedule a free consultation and learn how we can help with buying or selling a healthcare business.