In this video, Gary W. Herschman, JD, discusses “second bite” transactions in the private equity realm in the health care marketplace.
According to Herschman, a “second bite” transaction occurs when the physician group established by a private equity firm is sold to a larger private equity firm. When a physician practice initially partners with a private equity firm, the physician group receives payment upfront for 70% to 80% of the value of the practice with 20% to 30% roll over equity, Herschman said.
“The investors want the physicians to be (Read more...)