In a recent article in the American Health Law Association (AHLA) Business Law and Governance Practice Group Briefing, Jessica Scouten, Director of Forensic Services and Senior Manager of Healthcare Consulting, continues a series on distressed healthcare transactions. The article, “Why You Should Learn the Playbook: Know the Game Plan for Distressed Acquisitions and Divestitures, Part 3—Sale Terms and Market Considerations,” helps sellers and purchasers understand how to negotiate sale terms for court-approved stalking horse auctions.
Distressed Healthcare Sale Terms
Scouten and her coauthors stress the value in understanding how these sale terms incentivize both parties and the need to find a balance of competing interests during negotiations:
- Earnest money deposit
- Break-up fee
- Minimum initial overbid amount
- Bid increments
- Scheduling of a closing date
- Closing conditions
“Negotiating these terms requires a balance of competing interests,” Scouten and the coauthors write. “Sellers and purchasers need to consider how the sale terms incentivize one another when negotiating….”
The AHLA Briefing article was published on Feb. 12 and is available to AHLA members. Part 4 of the series will discuss regulatory considerations in healthcare transactions.
AHLA is the nation’s largest non-profit educational organization devoted to health law. PYA is proud to be a longtime supporter of the AHLA mission.
Learn more:
Read Part 1 about the distressed sale process.
Read Part 2 about market terms in distressed healthcare transactions.
PYA provides financial advisory, transaction due diligence, and litigation support services for financially distressed healthcare organizations. Our executives can provide strategic direction and operational insights to help you navigate and understand your options.
