Welcome to HealthcareBanker.com

Thank you for visiting HealthcareBanker.com a news aggregator of middle-market mergers and acquisition activity in the healthcare industries. This site addresses investment banking topics dealing with M&A, Capital Raising, Borrowing/Lending and other Corporate Development and Finance activities within the Healthcare Services, Healthcare IT, Medical Device, and Life Science industries.

Thursday, December 13, 2018

High Valuations Not Detering M&A In Healthcare IT


Healthcare IT Investment is Overvalued, But Will Increase Next Year

(from HealthLeaders)

While most healthcare industry players believe healthcare IT is an overvalued subsector, they still expect investment to rise in 2019, according to the KPMG-Leavitt Partners 2019 Investment Outlook survey.

More than 60% of healthcare professionals view healthcare IT asset prices as overvalued but also expect the subsector to grow faster than the overall healthcare market, according to a new survey released by KPMG-Leavitt Partners Monday morning.

Wednesday, November 21, 2018

Healthcare M&A Requires More Sophistication From Private Equity

       
Building a Successful Health Care Portfolio

Health care investments require specialized treatment



The booming health care market offers lucrative investment opportunities. In 2017, private equity investment in the U.S. health care market totaled $83 billion, up from $72 billion in 2016, according to the American Investment Council. And the surge is continuing. The first few months of 2018 saw the busiest start to a year in health care mergers and acquisitions in more than a decade, with approximately $156 billion worth of M&A deals (of all types, not just private equity) already agreed upon, the strongest start in over a decade, according to Bloomberg Markets.

Thursday, October 25, 2018

Communication During A Healthcare M&A Transaction: Why It's So Important To Have A Strategy


M&A Management 101: Communicate Constantly for Successful Due Diligence from Start to New Beginning

(from Radiology Business)

The pace of merger and acquisition (M&A) activity in healthcare is fast and accelerating, and radiology has been anything but exempt. Is your practice among those that are now involved in such discussions—or may be at some point in the not-distant future? If so, consider the following hypothetical.

Your practice has spent a great deal of time in the initial M&A assessment process, either self-guided or with a broker. Now your physician executive leadership, working alongside non-physician practice leadership, have selected a suitable partner. You are on your way.

Thursday, September 13, 2018

Insights Into Appraising Healthcare Service Businesses


Common pitfalls to avoid in healthcare valuation engagements

(from BVR)

Like many industry-specific appraisers, those who focus on valuation in the healthcare industry are often hired to provide initial opinions prior to a transaction. Many times, the valuator may be more knowledgeable about the business than the buyer. The buyer is often waiting for a valuation opinion as well as some initial due diligence. In BVR’s recent webinar, Healthcare Valuation: Approaches to Value and Common Pitfalls, experts Nicholas Janiga and Fred Lara (both of Healthcare Appraisers) covered the most common pitfalls to avoid when working on a healthcare valuation engagement.

Wednesday, August 29, 2018

Q2 Healthcare M&A Unfazed By Feds With No Slowdown In Sight


Despite regulatory uncertainty, healthcare M&A activity remains constant 

(from HealthcareExec)

More than 200 health services deals were reported in the second quarter of 2018, continuing the ongoing streak of mergers and acquisitions in the sector, according to PricewaterhouseCoopers.

Despite regulatory uncertainty in the healthcare environment, mega-deals marched forward during the quarter, which was the 14th consecutive quarter with more than 200 deals.

Year over year, healthcare deals rose 9.4 percent in the second quarter of 2018. Compared to the first quarter of 2018, deals declined 7.3 percent, with 255, according to PwC’s US Health Services Deal Insights Q2 2018 report.

Thursday, July 26, 2018

Does Selling Your Radiology Practice To A Larger Group Make Sense?


Mergers in Radiology: Good or Bad?

(from Diagnostic Imaging)

For the past several years, the conversation around mergers and acquisitions (M&A) and greater consolidation in radiology has focused on whether you should pursue the path. And, if you did, what financial model would be the most financially expedient?

We’ve now reached a point where many in the industry wonder how M&A is working and what impact it’s having on the profession and healthcare. According to many with first-hand experience, partnering to create larger practice models has worked well even if there have been a few obstacles along the way.

Thursday, June 28, 2018

Six Things Midlle-Market DME's Should Consider Before M&A To Strategic


Preparing for Acquisition in the Healthcare Industry

(from Business.com)

Factors spanning customer satisfaction, employee retention and policy must be navigated before selling a business in the healthcare industry.

As mergers and acquisitions (M&A) continue to trend up within the durable medical equipment (DME) field, many business owners are looking to sell either their entire company or an individual business line as new Medicare regulations make it increasingly difficult for small to midsize companies to maintain profit.

The rise in strategic asset purchases is supported by an industry’s worth of companies working to refocus and survive under insurance reimbursement cuts. Traditionally, medical equipment companies would provide everything possible to be positioned as a “one stop shop,” but considering the climate of this space, there is a large push to narrow product lines and focus on existing strengths and opportunities. By selling assets of their non-core line(s) of business, sellers will generate capital to support growth in other areas.

Thursday, May 31, 2018

Private Equity Looking For New M&A Platforms In Outpatient Physician Groups

Hospital, Physician Group Deals Dominate in April


- Budding trends can be seen in outpatient care deals, addiction treatment center transactions
- Physician practices are looking at four different deal options


Hospital and health system consolidation and physician practice acquisitions dominated a very busy April in the health-care industry transactions landscape.

“April was the second-most active month of the year, behind March,” Robert Aprill, of Provident Healthcare Partners LLC, Boston, told Bloomberg Law. This “indicates that major market players are increasing their acquisition presence.” Some big industry names were among that group, including Mednax Inc., Humana Inc., and AMN Healthcare Services, all of which closed two deals, he said. Private equity groups, such as Welsh, Carson, Anderson & Stowe and Chicago Pacific Founders also were active in April, he said.

Monday, April 30, 2018

Retail Healthcare On M&A Shoping List


Why private equity firms like veterinarians, opthamologists and dentists

(from Mergers&Acquisitions)


The healthcare industry remains a very hot place for investment. The U.S. healthcare M&A market began 2018 with almost $39 billion worth of deals announced in January — the strongest start in over a decade, according to Morgan Stanley. Many of the healthcare companies garnering attention from strategic acquirers and private equity firms have a few things in common: they are in subsectors where there is room for consolidation; they take pressure off hospitals; and most aim to give patients more specialized treatment, which is believed to lower the cost of care and improve outcomes.

Friday, February 23, 2018

Physican Practice Megers And Acquisitions In 2018


(from FierceHealthcare)

Last year was an active one for physician practice mergers and acquisitions—a trend that one expert says will continue in 2018. Among the drivers: constant regulatory changes and pressure to invest in healthcare technology.

“I don’t see any reason the trend is going to slow down,” says Jeff B. Swearingen, a managing director of Edgemont Capital Partners, a healthcare-focused investment bank in New York.

Last year, was a tremendously active one for mergers and acquisitions in the physician services industry, particularly for office-based practices, Swearingen said in an interview with FierceHealthcare, in which he looked back at 2017 and provided an outlook for 2018.

Thursday, January 4, 2018

2018 To Outpace 2017 Middle Market Healthcare M&A


Healthcare execs look to make deals in 2018 

(from Modern Healthcare)


If you're a middle-market healthcare executive, the odds are about the same as a coin flip that your 2018 growth plans involve consolidation.

About 150 CEOs, chief financial officers and other top executives from mostly middle-market healthcare companies—or half of respondents to a Capital One Healthcare survey released exclusively to Modern Healthcare—said they plan to buy or merge with existing businesses next year.

The finding underscores the increasing likelihood that 2017's whirlwind of mergers and acquisitions—which some predict will outpace that of 2016—will continue its lively pace well into 2018.