Independent Sponsor Seller Financing in Healthcare Services
Independent sponsor counsel for healthcare services, focused on Seller Financing and the deal mechanics that protect sponsor economics and LP alignment.
Every healthcare services acquisition has its own gravity. Seller Financing 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.
How Seller Financing actually gets structured.
Anchor seller notes at 5 to 15 percent of EV, with a 4 to 6 year term.
Subordinate explicitly to senior and mezzanine debt with a clear standstill on default.
Price interest at 6 to 8 percent, with cash pay or PIK depending on the senior package.
Build prepayment optionality so refinancing flexibility is preserved.
In healthcare services, layer in PC/MSO structuring as part of the Seller Financing workstream.
Treating the seller note as a hand-shake. Sellers sue on notes more often than on equity disputes.
"A seller note is debt. Document it like debt. Service it like debt."Jason Powell · Seller Financing
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.
Related deal pages.
Transaction Fee Structuring for Healthcare Services
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Working Capital Adjustments for Healthcare Services
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Representation & Warranty Insurance for Healthcare Services
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Indemnification for Healthcare Services
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
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Seller Financing 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.