Today, private equity groups (PEGs) have a growing presence as buyers of lower middle market healthcare companies. Why? They see the continuing expansion and diversification of healthcare opportunities, ranging from a local group of urgent care centers with wellness options to an array of senior living services with exceptional life quality. PEGs have increasingly moved “downstream” to healthcare companies with annual adjusted EBITDA as low as $500,000, which are regarded as “tuck ins” to existing operating platforms.
Why would a seller of a healthcare company want to consider a PEG as a buyer? Here are three good reasons