Outlook for Urgent Care Center M

1. Outlook for Urgent Care Center M&A in 2014 2013 brought growth to the M&A aspect of urgent care centers. However, with new government regulations and provider shotages, what will 2014 bring to the industry? Dallas, TX, March 04, 2014 - 2013 brought growth to the M&A aspect of urgent care centers.However, with new government regulations and provider shotages, what will 2014 bring to theindustry Owners of such centers shouldn't suffer from a shortage of potential buyers, but preparation forsale will be the key to success. “We have seen urgent care garner more and more attention from the health systems and that willalso grow in 2014,” said Blayne Rush, president of Ambulatory Alliances, a healthcareinvestment banking and urgent care center broker firm. “Health systems see that urgent care isan entry point for the patients. I have seen where urgent care refer a great deal of patients toprimary care and the systems are fighting over that influence.” The pattern that some experts expect to see in the coming year is that of smaller deals, asoppossed to those involving urgent care companies with more than three locations. “From a financial buyer perspective, the challenge is a shortage of platforms of sufficient scale,”said attorney Geoffrey Cockrell, co-chair of the private equity group at law firm McGuireWoods.“…It may require piecing together a couple [platforms] to have sufficient scale to absorb theoverhead that a financial sponsor will want to overlay.” The main threats anticipated involve state-level government regulation and national healthcareprovider shortages. “The regulatory market may put pressure on fragmentation as well,” said Cockrell. “You’re seeingit in New York, you’re seeing it in other states as regulators try to wrestle with this evolvingindustry. …This will make it more challenging for the smaller urgent care companies.” Considering all factors, however, 2014 looks to be the year that those looking to do so should sell.Success in this regard will be heavily dependent on the preparations taken by physician ownersprior to selling. “An astute buyer will not buy compliance risk,” said attorney Jon Henderson, Corporate andTransactional Practice chair at law firm Polsinelli PC. “The stakes are too high from a reputationstandpoint. An astute seller will engage in an appropriate level of self-diligence to understand hiscompliance profile.” The growth and expansion of the urgent care market is thriving as a result of more factors thanjust the M&A aspect. Furthermore, while 2014 looks promising for investors and owners, expertswould warn against letting this prosperous time pass by.

2. “Anything can be overbuilt, but there’s still a sense that there’s still green space available forbuilding those businesses,” McGuireWoods’ Cockrell said. “If not, we’ll start to see moreconsolidation and that may be an alternative as well.” Contact: Blayne Rush, MHP, MBAPublisher The Ambulatory M&A Advisor18181 Midway Rd. Ste 200Dallas, TX 75287 publisher@AmbulatoryAdvisor.comhttp://www.Ambulatoryadvisor.com ###