Value

The value of receiving part of your future income stream today is of greater value than waiting to receive it over several years. By selling part of your surgery center interest, you diversify your assets.

Covenant uses a unique strategy that could greatly increase the amount you ultimately receive in a sale of your center.

Recognize Equity

  • You currently have significant equity buried in an illiquid asset.
  • The only way to recognize that equity is by selling all or part of it.
  • Timing that sale perfectly is impossible. The closer you are to retirement, the less value the center has to the buyer, because the value of the center is a function of profitability, which is dictated by case volume. The hard assets of the center are inconsequential to the sale.
  • Your physician partners will not pay as much as an outside corporate partner for your interest in the surgery center, and upon retirement, your corporate partner may be a better source of funds for your remaining surgery center interest.
  • By selling part of your surgery center interest, you diversify your assets.
  • Without selling, you have a bond that will never mature for you. You will receive the income as long as you are involved, but unless you are able to perpetuate the volume of procedures performed in the center, eventually, the center will be worth next to nothing.

Present Value

  • The value of receiving part of your future income stream today is of greater value than waiting to receive it over several years.

Capital Gains

  • The value of receiving part of your future income stream today taxed at capital gains rates versus ordinary income rates enhances the value tremendously.

Added Value

  • If Covenant can increase the profitability of your center by adding another physician or two through recruiting new physicians or existing physicians in the community, maximizing contracts through yearly review and continued negotiations and ensuring efficient operations through sound operating policies and management, the remaining physician income may ultimately grow to replace the portion sold.

Eliminate Risk

  • Do you know what will happen with facility reimbursement rates in the future?
  • Are you certain that your practice will maintain the volume of cases you now perform?
  • Is your practice still growing at the same rate that it has over the past several years?
  • Will alternative technologies negatively impact the type and amount of cases you will perform in the future?
  • By selling part of your center today, while financial performance is strong, you eliminate part of your future risk of a financial down turn.

Unique Opportunity

  • Covenant uses a unique strategy that could greatly increase the amount you ultimately receive in a sale of your center.