Becker's Healthcare February 12, 2025
Bankers and private equity advisors are shifting their focus toward physician practice deals in 2025, opening up key legal and business considerations for physicians as they prepare for potential transactions, law firm Foley & Lardner wrote in a Feb. 10 article published in JD Supra.
Here are three takeaways from the article:
1. Tax treatment and status of transactions. Most deals are structured to ensure that the purchase price is not treated as “ordinary income,” the authors write, and is taxed at capital gains rate. This ensures that the receipt of rollover equity is received on a tax-deferred basis. The tax status of the practice and the way the purchase practice is allocated among physician owners can affect the...