Partner Buy-ins and Buyouts for Hospitals

Buying into an established clinic, hospital or surgery can avoid the costs and uncertainties of setting up, and provide a share in a business offering predictable returns. 

Partner Buy-ins may be an opportunity for an existing partnership to bring in new talent as part of an expansion plan, or provide the most appropriate way for an existing partner to leave the business.

With a Buyout, you may acquire the entire business.

The sums involved will reflect the profitability and potential that the facility can offer. However, the most appropriate funding solution will depend on the scale of funding required. 

Funding options for a Partner Buy-in or Buyout

Some types of funding are more suited to a Buy-in or Buyout than others.

Secured Loans 

The scale of funding required with larger practices may make some form of Secured Loan necessary. Security, such as the business premises or your home, may be required and will be at risk if you cannot keep up repayments.

Practice Loans

It may also be possible to arrange a loan that is, effectively an advance secured on the future performance of the business in the form of a Practice Loan.

Asset Refinance

Borrowing against the existing assets - Asset Refinance - in the facility, which are likely to include a great deal of valuable equipment, may allow a high level of funding to be raised.

Unsecured Loans

Lenders may provide an Unsecured Loan, repayable over three to five years to support a Buy-in or Buyout. No security is required, but you will need to provide a personal guarantee for this type of lending.

Private Equity

This is an increasingly popular source of finance - even for businesses at the smaller end of the market. Private equity firms will usually look for liquidity after 3 to 6 years, and expect to be able to take their profits then. However, it's important to remember that the private equity firm is looking to maximize its own returns, rather than building a sustainable future for your practice.

Vendor Loan

A vendor can help fund the transition by leaving some of their equity within the company, as loans to be repaid over time. This may be required by some lenders who seek evidence that your plan is seen as fully viable by the sellers.

Why you need Rangewell to find finance for your Buy-in or Buyout

If you are planning to buy into an established practice, you will find that many lenders will be happy to lend to you. Your status as a medical professional represents a good business risk to them, plus you are able to prove the viability of an existing business with accounts. 

But not every lender will be prepared to offer you their most competitive terms, or provide the flexibility that you need for your venture.

You also need to consider that looking for the most competitive deal across the entire lending market takes time and expertise - time you may simply not have. However, we know the lenders who can offer the most competitive rates, and we can find solutions for the full spectrum of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and much more.

As well as conventional loan products, we can also help you acquire Alternative Funding, using the new loan providers and new styles of funding. Whether you have a more straightforward, small-scale funding requirement, or need a more complicated ‘Jigsaw’ funding plan made up of a combination of financial products, we can work with you to find the answers.

Get support for:

• private equity for management buy-ins
• private equity for management buyouts
• partner buy-ins and buyouts for hospitals
• refurbishing a hospital
• VAT and Tax Loans for hospitals
• general finance for hospitals and surgeries

Call us now to get our experts working for you.