EPISODE · Aug 27, 2019 · 32 MIN
What Do Physician Practice Owners Think of Private Equity?
from Middle Market Growth Conversations · host Association of Corporate Growth
Tom Turmell, founder and managing director of TMT Capital Partners, spoke with Middle Market Growth about how health care entrepreneurs are looking to grow their businesses, and the common questions he hears about private equity, which continues to show strong interest in acquiring physician practices. In addition to his role at TMT, Turmell delivers and teaches a class to physician entrepreneurs at Northwestern University's Kellogg School of Management, where he serves as director on the executive education team and as an academic director. During the interview with MMG, he described what his Physician CEO class covers, and the questions he's heard from his students about selling to a private equity buyer. Common concerns include loss of control, both in terms of the patient experience and in making key business decisions, as well as questions over future compensation for the doctors selling the practice and junior physicians alike. Some physicians recall a spate of failed physician practice investments by PE firms over a decade ago, but Turmell says the private equity industry has learned from those past mistakes. Choosing the right investment partner remains critical, and he suggests considerations for physicians to keep in mind as they evaluate potential investors. During the conversation, Turmell referenced an article published in MMG in May focused on physician practice M&A: https://middlemarketgrowth.org/the-round-private-capital-stitches-up-physician-practice-space/ That article was featured in a health care-themed edition of the magazine. The full issue is available here: https://middlemarketgrowth.org/read-the-may-june-2019-issue/ To read more about trends in the middle market, visit our website, middlemarketgrowth.org.
What this episode covers
Tom Turmell, founder and managing director of TMT Capital Partners, spoke with Middle Market Growth about how health care entrepreneurs are looking to grow their businesses, and the common questions he hears about private equity, which continues to show strong interest in acquiring physician practices. In addition to his role at TMT, Turmell delivers and teaches a class to physician entrepreneurs at Northwestern University's Kellogg School of Management, where he serves as director on the executive education team and as an academic director. During the interview with MMG, he described what his Physician CEO class covers, and the questions he's heard from his students about selling to a private equity buyer. Common concerns include loss of control, both in terms of the patient experience and in making key business decisions, as well as questions over future compensation for the doctors selling the practice and junior physicians alike. Some physicians recall a spate of failed physician practice investments by PE firms over a decade ago, but Turmell says the private equity industry has learned from those past mistakes. Choosing the right investment partner remains critical, and he suggests considerations for physicians to keep in mind as they evaluate potential investors. During the conversation, Turmell referenced an article published in MMG in May focused on physician practice M&A: https://middlemarketgrowth.org/the-round-private-capital-stitches-up-physician-practice-space/ That article was featured in a health care-themed edition of the magazine. The full issue is available here: https://middlemarketgrowth.org/read-the-may-june-2019-issue/ To read more about trends in the middle market, visit our website, middlemarketgrowth.org.
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What Do Physician Practice Owners Think of Private Equity?
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