Close · Healthcare Services

Independent Sponsor Representations & Warranties Drafting in Healthcare Services

Drafting Representations & Warranties Drafting 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

The economics on a healthcare services platform deal usually hinge on a handful of structural decisions. Representations & Warranties Drafting is one of them.

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 Representations & Warranties Drafting actually gets structured.

  1. Anchor on a modern PE-style rep package, not an asset-purchase boilerplate.

  2. Distinguish fundamental reps from general reps in survival and cap structures.

  3. Negotiate knowledge qualifiers to defined-person knowledge, not constructive knowledge.

  4. Coordinate the rep package with the R&W insurance carrier's underwriting.

  5. In healthcare services, layer in PC/MSO structuring as part of the Representations & Warranties Drafting workstream.

The common mistake

Drafting reps without reading the disclosure schedules. The schedules are where the risk actually lives.

Jason's take
"Reps and warranties are a risk allocation. Draft them like risk allocation."
Jason Powell · Representations & Warranties Drafting
Capital after close

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

Capital after close is where the IRR actually gets made. The right introductions at month nine through month thirty are where this practice works as hard as it does at the LOI.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
ENGAGE THE PRACTICE

Representations & Warranties Drafting for Healthcare Services, on independent sponsor terms.

Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.