Company Overview

PRIME exits and American Healthcare Capital is proud to be the exclusive representative of a well-established and highly reputable urology practice in the Midwest seeking a strategic or capital partner to support future growth and facilitate an eventual transition for its physician-owners. Founded over two decades ago, this practice has built a strong reputation for delivering advanced urological care through cutting-edge technology and an expert medical team.

Business Overview

Structured as a physician-owned entity, the practice operates with a team of highly skilled

providers and a dedicated support staff. The patient base is diverse, with a significant portion covered by Medicare, alongside commercial insurance and Medicaid patients. The practice maintains financial stability, with strong EBITDA performance despite a recent strategic shift away from pharmacy services due to reimbursement changes.

Financial Performance (2022-2024)

Gross revenue has declined over the past few years because of the group’s decision to suspend pharmacy services over time due to changes in insurance reimbursement. However, despite the revenue decline, EBITDA has remained stable and exceeded 30% in recent years, which demonstrates the practice's ability to sustain strong profitability through cost management and operational efficiency.

Note: 2025 numbers are projections.

Growth Strategy

The practice is well-positioned for expansion through:

• Provider Recruitment: Adding more urologists or licensed nurse practitioners to meet increasing demand.

• Geographical Expansion: Entering additional regional markets.

• Service Line Expansion: Introducing minimally invasive procedures, robotic surgery, and

telemedicine.

• Strategic Partnerships: Aligning with hospital networks and insurers.

• Technology Investments: Enhancing telemedicine capabilities, Leveraging AI-driven

diagnostics and advanced surgical innovations.

Market & Competitive Landscape

The U.S. urology market is growing, fueled by an aging population, increasing prevalence of

chronic kidney disease, and advancements in minimally invasive surgical procedures. Market size projections indicate steady expansion, with significant investment potential in specialized urological services and technology-driven care solutions.

Investment Opportunity & Exit Strategy

The current owners are planning for retirement within the next 3-5 years and are seeking a buyer who can build upon their legacy. They are open to a full acquisition or a majority sale with an equity roll-over.

Conclusion

This practice represents a high-margin, financially stable investment opportunity in the resilient healthcare sector. With its strong patient base, advanced service offerings, and clear expansion strategies, it is an attractive proposition for private equity firms, healthcare investors, or strategic buyers looking to enter or expand in the urology space.

Asking Price and Valuation

The practice is valued at $40 million, with potential deal structures including a 20-25% roll-over equity arrangement and an earnout extending into 2026.