Private Equity Incubation Initiative℠

Aspire Exclusive. Practice Transformative. Physician Empowering.

Physicians in relatively modest sized practices have never been allowed to avail themselves of the substantial financial opportunities created by private equity or mergers and acquisition transactions. To attract a legitimate private equity firm a practice typically must have a bare minimum of $2Million in annual adjusted EBITDA, a performance metric that is simply beyond the reach of most physician practices. Practices that cannot generate the minimum required EBITDA, are deemed by the industry to be “sub-scale” and private equity firms simply will not engage with them as a potential investment.

There are a number of reasons for this exclusionary dynamic within the private equity and mergers and acquisitions space. Smaller practices are considered to carry more investment risk, which is a legitimate financial concern. However, the predominant reason for the industry’s prejudice against smaller practices is quite straightforward; the vast majority of private equity firms neither possess the healthcare industry knowledge and practice operations expertise to effectively scale a small practice into a thriving center of excellence, nor do they have the willingness to do the hard work required to create such a metamorphosis. Fortunately, the Aspire team has not only the skill sets required to build a small practice into a thriving, rapidly expanding care delivery team, it is also one of their greatest professional passions.

Private Equity Incubation Initiative℠

Aspire has developed an innovative approach to working with smaller practices that is totally unique in the private equity industry. Through the Private Equity Incubation Initiative℠ (PEII) Aspire will partner with select practices, of virtually any size, provided they are led by entrepreneurial physicians who have a sincere desire to avail themselves of the financial benefits that a private equity or merger and acquisition transaction creates.

For practices that qualify, Aspire will engage its team of practice operations and investment professionals to do three things:

To polish and professionalize the current practice in terms of operating systems, methods, procedures, controls, marketing, management reporting and accounting.
Working with the practice’s owners, create and implement a business development plan that will enable the practice to meet, or exceed, the $2Million in annual adjusted EBITDA required to successfully complete a private equity or merger and acquisition transaction, or sale of the practice to a strategic buyer. While no two business development plans are alike, typical components are additional providers, de novo locations, new service line development, and bolt-on transactions with other practices.
When the desired scale has been achieved, Aspire will either partner with the practice as a private equity investor, or shepherd the practice through a successful financial transaction with a third party, allowing the physicians to realize very substantial financial rewards.
Physicians whose practices qualify for the PEII can expect an initial private equity or merger and acquisition transaction within three to five years, with a substantial liquidity event at closing. Physicians are also provided the opportunity to carry over a substantial part of their equity into a secondary transaction that is even more financially rewarding than the initial transaction.

Private Equity Incubation Initiative℠

Private Equity Incubation Initiative℠

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