Physician Practice Sale Leaseback

Background: 

The Ascension Team represents a private equity backed cardiology platform that is rapidly expanding in the midwest. The company was evaluating an add-on acquisition that included a piece of owned real estate in the Chicago metro area. The business was buying a cardiology practice and the physician owned the real estate and wanted to include it as part of the transaction.

Client Objective: 

The client reached out to the Ascension team to discuss financing strategies and to see if it was possible to complete a sale leaseback simultaneous with the company’s acquisition of the cardiology practice. The simultaneous sale leaseback would allow the private equity firm to reduce their equity check and take down the acquisition multiple associated with the add-on.

Solution: 

Ascension ran an expedited investor outreach process, focused on healthcare and medical focused investors who understand the nuances associated with this asset class. The team lined up all parties and workstreams so that the sale leaseback was able to close simultaneous with the sponsor’s add-on transaction. Ultimately, the deal closed quickly and at attractive terms to both parties, allowing the sponsor to maximize the economics of the add-on.