Mergers & Acquisitions

Resources: M&A Talk Podcast

At M&A Talk we bring you exclusive interviews with experts in business sales, valuations, mergers and acquisitions and more. We talk to the most experienced professionals in the industry to uncover their secrets.

Michael Roub on Healthcare M&A

Michael Roub on Healthcare M&A

Michael Roub

Corporate Development and M&A Expert | Strategic Consultant

Michael Roub is Managing Partner and Founder of Inflection 360. He has spent two decades providing strategic direction and leadership to healthcare practices, business owners, and management teams.

When Michael was acquiring healthcare practices for Western Dental Services and US HealthWorks, he consistently found that practice owners were failing to get the highest value for their businesses. Michael wanted to level the playing field for healthcare practice and business owners when selling to a larger competitor or financial sponsor.

Michael received his undergraduate degree from the Wharton School of Business and his MBA from the University of Chicago Booth School of Business.

Guest Profile

Michael Roub is a Managing Partner and Founder of Inflection 360. He has spent the past two decades providing strategic direction and leadership to healthcare practices, business owners, and management teams.

When Michael was acquiring healthcare practices for Western Dental Services and US HealthWorks, he consistently found that the practice owners were failing to get the highest value for their businesses. Michael wanted to level the playing field for healthcare practice and business owners when selling to a larger competitor or financial sponsor.

Michael received his undergraduate degree from the Wharton School of Business and his MBA from the University of Chicago Booth School of Business.

Company: Inflection 360

Location: Los Angeles, California

LinkedIn: https://www.linkedin.com/in/michaelroub/

Website: https://michaelroub.com/

Email: michael@inflection360.com

Phone: (818) 730-1199


Topics Covered

  • Can EBITDA margins be as high as 40% for some healthcare practices? [9:30]
  • Overview of healthcare services M&A [10:00]
  • Why has the scalability of healthcare businesses increased so much in recent years? [12:40]
  • The current state of the healthcare market [13:40]
  • What are the benefits of a medical group? [16:20]
  • How are larger healthcare acquisitions financed? [18:00]
  • Example of a healthcare acquisition — revenue, margins, EBITDA, multiple [18:50]
  • How do private equity groups structure their relationships with healthcare practices? [20:25]
  • How does an equity rollover work? [22:30]
  • What role does a private equity firm prefer the owners to play post-acquisition? [26:00]
  • Salary expectations for ownership post-acquisition [29:50]
  • Are private equity firms the primary source of capital in the healthcare market? How common is debt financing? [32:45]
  • How accessible is debt for independent healthcare operators? [33:45]
  • How do changes in the regulatory environment impact the healthcare industry and the attractiveness of acquisitions? [34:55]
  • The future of the healthcare industry and its impact on healthcare M&A [38:40]
  • How common is cross-border M&A in the healthcare space? [40:00]
  • How is equity used to incentivize senior leaders in healthcare businesses? [41;45]
  • How is a typical private equity M&A healthcare transaction structured? [45:00]
  • Drag-along rights [47:00]
  • How do minority partners achieve liquidity? [49:00]
  • How do private equity group timeframes affect healthcare businesses and the industry? [51:00]
  • What improvements do PE firms typically make to improve the business? [56:20]
  • How common is it to sell to a competitor vs. a private equity firm? [57:30]
  • Do you prefer working the sell-side or buy-side better? [59:40]
  • How much additional value can the seller create by preparing their business for sale? [1:00:30]
  • What’s your advice to owners of healthcare practices looking to sell? [1:05:50]

Learn More

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