Find answers to commonly asked questions below. If you would like more information please contact us. We are more than happy to chat with you!
How is my practice valuation determined?
The primary metrics for determining your practice's valuation are the earnings (EBITDA) that are associated with both your practice and your ambulatory surgery center (if applicable). Based upon your EBITDA profile, growth potential and practice scale you can expect a multiple to be paid on those earnings. It is very difficult to predict the multiple but on a very broad average 5x to 10x is most common with options to defer some of this capital into the new private equity entity/venture you would now become a part of. In Private Equity deals, size isn't as important as profitability.
Will the new private equity partner strip down my practice? My staff? Etc...
No. Consistent with our commitment to align you only with private equity partners who respect the culture and integrity of your organization, the groups we work with are not intrusive to your day-to-day operations. Your brand identity remains intact, your team stays in place, and you retain meaningful influence over the decisions that shape the future of your business. You will continue to operate with the same values and standards that made your organization successful — only now, with the capital and resources to accelerate growth. This is the distinction between having Pegasus Equity Advisors represent your interests and attempting to navigate a transaction on your own.
What is the strategic growth model after the acquisition of my practice?
Make no mistake — this is a growth-driven acquisition model. Owners seeking to simply exit or wind down their operations are rarely the right fit. We partner with forward-thinking healthcare entrepreneurs who want to expand their reach, enhance operational efficiency, and focus more on their core professional strengths while relying on experienced partners to handle the administrative complexities that limit growth. Through carefully tailored strategies — from operational optimization to patient and referral volume initiatives — Pegasus Equity Advisors works with you and your partners to position your organization for long-term, sustainable expansion..
If I sell my practice do I have to take part of my distribution in stock?
In most situations you will be expected to defer part of your distribution into private stock of the new entity you joined. This is to ensure that your interests are aligned with your capital partner’s interests. Being a shareholder post-acquisition also allows you to enjoy future potential liquidity events making your total investment worth even more.
Why would I want to invest part of my buyout into the new company's stock?
Private equity usually follows a very predictive 'turn cycle' whereby practices are acquired and are rolled into the new corporate entity (typically). In what is usually a 4-5 year acquisition process of adding practices, that new entity is then sold to another private equity group but is paid at a higher multiple of earnings than what your initial payout was when you joined. It's another bite at the financial apple downstream which is a great benefit.
What makes Pegasus Equity Advisors different from an investment banker?
Most investment bankers lack meaningful expertise in the healthcare industry. Ask them to explain the operational, clinical, or reimbursement differences among various types of providers, and it quickly becomes clear how little they understand about the realities of running a medical practice. Their approach is often purely transactional — focused on the sale rather than the partnership that follows. At Pegasus Equity Advisors, we believe this is a fundamental misalignment. Selling a healthcare practice is not simply a financial event; it is the beginning of a long-term relationship that will shape the future of your staff, your patients, and your legacy. Our firm was founded on the principle that physicians and practice owners deserve advisors who understand both the business and the mission of medicine. With decades of combined experience across healthcare operations, corporate development, and investment banking, Pegasus provides independent, conflict-free guidance that prioritizes the right strategic fit — not just the highest bidder.We view every transaction as the creation of a partnership built on trust, transparency, and shared vision — ensuring that your life’s work continues to thrive under new ownership while achieving the financial outcome you deserve.
What services does Pegasus Equity Advisors offer?
We are a modern, specialized and boutique advisory firm that aligns practice owners with private equity partners who are proven, strategic, and values-driven. Unlike conventional practice brokers or generalist investment bankers who may “shop” a business to the first buyer showing interest, Pegasus Equity Advisors takes a highly selective, relationship-based approach. Our value lies in the depth of our network and the integrity of our process. We work exclusively with established private equity groups that have demonstrated long-term success in healthcare investments and a respect for operational autonomy. From initial discovery through diligence, negotiation, and closing, we manage the entire process on your behalf — ensuring that every stage aligns with your vision, goals, and definition of success. Following an initial consultation to understand your objectives, our internal financial analysis team determines your practice’s normalized EBITDA and likely market valuation. We then introduce you to the private equity partners best suited to your strategic and cultural fit. Pegasus oversees every step — from early financial review through diligence, valuation validation, and closing — a process that typically spans six to twelve months depending on complexity. Throughout the engagement, we communicate proactively and transparently to ensure a smooth, informed, and efficient transaction. Most importantly, Pegasus represents your interests — not the buyer’s.
What does it cost?
We charge $0 for performing your initial practice valuation (EBITDA) analysis. If after a lengthy conversation and discussion around your valuation potential, and setting of expectations, we charge our clients the following. Pegasus Equity Advisors charges an initial one-time retainer alongside a nominal monthly fee. If we are successful at transacting you to a buyer, there is a 'success fee' paid at the end that is a percentage of the total transaction value. The amounts and ranges vary from deal to deal depending on the scope and size of the deal. We have no financial interest or gain from the acquiring private equity group and only represent the interest of our clients in a transaction. As a result the vast majority of our fees are tied to the success of our clients sourcing and closing a deal.
How do I get started if I am interested in learning more?
Simple. Click on CONTACT at the top of this page then fill out our client intake form. Or, you can send us an email directly