Most practice assessments begin with an assumption that both parties are prepared to explore a transaction, that the seller is willing to devote staff time to the process, and that the information needed to conduct the assessment is readily available.

In our experience, those assumptions are often premature.

Sometimes the parties are still trying to determine whether they can work together. Sometimes the practice is understandably reluctant to open its books before it understands who is asking, why the information is needed, and what will be done with it. And sometimes the information simply isn’t available in a form that answers the questions that need to be addressed.

In those situations, the assessment process has to do more than collect data.

It has to build enough understanding and confidence for the parties to participate in the process.

That may mean starting with a limited set of available information, identifying what is missing, discussing the business with the people who know it, developing reasonable assumptions, and gradually building a more complete picture of the practice.

The objective is not simply to obtain more data. It is to help the parties develop a shared understanding of the business, a realistic view of its future, and terms that balance their respective business objectives and reduce downstream surprises.

What I’ve Learned…

Experience matters most when the path forward isn’t obvious. A good advisor doesn’t wait for a perfect data package. The advisor figures out what needs to be known, develops a practical way to get there, and helps the parties become comfortable enough with the process to make an informed decision.

Healthscope Decision Briefs share practical observations to help physicians, healthcare organizations, and their advisors make better-informed business decisions before important commitments are made. If you’re contemplating an important healthcare business decision, I’d be pleased to have a confidential discussion.