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In October of 2020, Urology Austin and its affiliated businesses (collectively “UA” or the “Company”) formed a partnership with Gauge Capital to develop Urology America, a newly formed platform aimed at creating a best in class urology platform with a national footprint. PGP served as the exclusive transaction advisor to Urology Austin throughout the process that was navigated amidst the COVID-19 pandemic.
PGP utilized a targeted yet comprehensive process to help Urology Austin find an ideal partner. From the outset, the Company, its shareholders, and management team clearly defined what they were looking to achieve, and what the right partner would bring to Urology Austin in order to help them achieve their strategic vision. PGP approached only the most sophisticated private equity firms in the healthcare space, with proven track records. Working on the Company’s behalf, PGP emphasized partnership as a factor equally important as economics. Through structured meetings with selected parties, detailed questionnaires built by PGP, and extensive vetting of references, PGP was able to put Urology Austin in a position to explore the partnership opportunity with a number of groups that have been highly successful in the space. The result of the transaction process was a fantastic outcome for the shareholders today, while establishing a platform poised for rapid, widespread success down the road.
A business with the scale of Urology Austin and defined growth trajectory did not lack suitors hoping to advise them through their partnership process. UA’s decision to engage Physician Growth Partners stemmed from our constant, senior level involvement in the transaction, along with our tireless approach of ensuring shareholders are as educated as possible on every single component of the deal. Urology Austin had a clear focus on finding a partner that would enable them to scale from a regionally dominant platform to a national leader. PGP knew it could utilize its experience and articulate their growth goals to the buyer universe, while simultaneously ensuring the shareholders were perpetually informed to a level where they could make the most educated decision possible.
Speaking on the transaction process, Patrick Murphy, former CEO of Urology Austin commented, “Our entire transaction process with PGP has been outstanding. I’ve worked with countless advisors over my almost 30 years in healthcare on M&A transactions, and never has one been so involved as Michael and the PGP team. What impressed me the most was their interest in learning our business from top to bottom to ensure everything was covered properly throughout the deal. They were with us every step of the way from beginning to end. Their diligence and assistance in navigating through the issues gave us the assurance the outcome we achieved was a success.”
Every transaction has obstacles and challenges; executing a transaction of this size while navigating the COVID-19 pandemic was uncharted territory. PGP methodically pressed hold on the process at the beginning of the pandemic, advising Urology Austin to continue only once there was a clear line of sight on returning to pre-COVID performance. PGP worked with management throughout the holding period to ensure it could put itself in that position as efficiently as possible while not lowering clinical care expectations. Without the patience the group collectively decided to maintain, there would have been significant exposure from not only a value perspective, but when looking at the go-forward terms on the newly established platform. With PGP’s guidance, the Company successfully emerged from the pandemic and was able to complete a transaction that delivered value, structure, and governance ensuring the platform was well positioned to become a national, best-in-class, urological platform.
Speaking on the outcome of the process and navigation of the pandemic, Michael Kroin, Managing Partner of Physician Growth Partners, added “PGP is incredibly pleased with the outcome achieved in Urology Austin’s transaction process. The shareholders had the preeminent regional platform and were ready to replicate it at the national level. Finding the right partner with whom they could accomplish this level of growth was no easy task. The Company’s trust in PGP allowed us to both work quickly and get creative on how we could get a deal done in uncertain times. We believe the deep emphasis on partnership throughout allowed the group to form a platform that can rapidly scale at the national level while maintaining clinical excellence in the Urology space.”
Gauge Capital and its operating partners have a deep track record of building healthcare businesses. They clearly understand and are aligned with Urology Austin’s ambition to be a national, clinically leading urological platform. They are focused on empowering the current clinical and management team while identifying like minded groups around the country that would be a strategic fit to join the Company’s mission.
In a specialty that is still early in the consolidation wave, the Company has the ability to be a first mover and thought leader. Through its new partnership with Gauge Capital, Physician Growth Partners expects Urology America to become a leading strategic option for independent urology groups across the country, ultimately achieving the ambitious business and clinical goals they have laid out for themselves.
For More Information, please contact Michael Kroin, the Managing Partner of Physician Growth Partners at