Preparing for Acquisition 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.