HPS Invite

What is HPS?

If you are invited to participate on the HPS sales platform, you will have several options for selling your practice.

HPS is not a broker. Rather, it is a platform with over 1,400 buyers interested in acquiring healthcare practices. Approximately 200 of these are institutional buyers, while more than 1,200 are well-funded private buyers.

Practice Twin and a Guaranteed 1x Collections Offer

If you are accepted into the Practice Twin program (part of HPS), you will receive a guaranteed minimum offer equal to one year of your collections, subject to due diligence.

Here is how it works:

HPS/Practice Twin locates and funds a doctor (your replacement) to purchase your practice for 1x collections.
For example, if your practice collects $1 million annually, HPS/Practice Twin will find a replacement doctor, loan them the $1 million, and doctor/buyer will use that to buy your practice.
The buyer repays HPS/Practice Twin over time. The main goal is to grow the practice significantly and later sell it for a profit.
You are fully bought out and no longer involved after the sale.

This Model Is Efficient Because It Does Not Rely on the Buyer’s Personal Credit

Instead, HPS funds the buyer based on the strength and growth potential of your practice.

As the seller, you can choose to be paid entirely in cash or as a combination of cash and stock. If you opt for stock and it appreciates as expected, your total proceeds could be three times or more times collections. Under this model, there is no obligation to continue working, as the replacement doctor takes over, but you will need to approve of the new doctor.

Placement on the HPS Platform

The HPS Platform has over 1.400 buyers who have signed on to review and acquire healthcare practices. Once your practice profile (Deal Readiness Profile) is complete, it is posted anonymously on the HPS platform to be reviewed. You will have a personal dashboard where offers are communicated directly to you.

It is your decision, along with your team, to negotiate for the highest price and the deal structure (which includes how long you wish to stay, salary etc..) that best fits your goals. HPS is available to assist with negotiations.

Most buyers on the platform prefer that the selling doctor remains because their strategy is to grow and later sell the practice at a higher value. Staying on can lead to a higher total payout for you.

Targeted Buyers

Many buyers are seeking practices with certain management systems, unique services or ancillary revenue streams. The buyers like practices generating revenue through ancillaries because these features help buyers grow the business without relying solely on doctor visits. The ancillary also creates a common nexus among practices which allow for the possibility of a roll-up of several practices.

These buyers will pay premium multiples on “ancillary-based EBITDA” if the seller can demonstrate that these services can be implemented successfully in their practice and are reimbursed by insurers in their area. Buyers will also acquire these practices through the HPS/Practice Twin model by funding replacement doctors who will pay the seller a minimum of 1x collections (enhanced if part of the purchase is in stock) as the growth plan is clear.