Close · Healthcare Services

Indemnification Counsel for Healthcare Services Acquisitions

Drafting Indemnification on healthcare services deals, with the structure protection and capital connectivity an independent sponsor actually needs.

EV range $15M to $120M EV EBITDA $3M to $20M Audience Buy-side / Sponsor
The deal context

Every healthcare services acquisition has its own gravity. Indemnification is the workstream where independent sponsor counsel earns the seat.

The typical healthcare services platform sits at $15M to $120M EV with EBITDA in the $3M to $20M range. The thesis runs on roll-up of physician practices and ancillary service lines. Most off-market healthcare deals come through advisors who have seen the structure before. Have one in your call list.

The moves

How Indemnification actually gets structured.

  1. Set general indemnity survival at 18 months, fundamental reps for the full statute of limitations.

  2. Build a basket at 0.5 percent of EV, with a deductible structure, not a tipping basket.

  3. Cap general indemnity at 10 percent of EV, with R&W insurance carrying the layer above.

  4. Carve out fraud, tax, and intentional breach from any cap.

  5. In healthcare services, layer in PC/MSO structuring as part of the Indemnification workstream.

The common mistake

Negotiating caps and baskets without first reading the disclosure schedules. The schedules dictate the real exposure.

Jason's take
"Indemnification only matters when the deal goes wrong. Draft it as if it will."
Jason Powell · Indemnification
Capital after close

The deal is one thing. The capital that opens up after close is another.

Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
WORK WITH JASON

Bring the healthcare services deal. Get Indemnification done right.

Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.