by Jack Turgeon, Senior Consultant .In this article, we delve into the current state of the economy, particularly its impact on the private equity investing and healthcare services M+A sectors through Q2 2023. We are moving through the latter half of the year facing unexpected economic developments, so we will explore how business owners in […]
The Rise in Healthcare Investments: 8 Facts and Stats to Know
by Alan Hymowitz, Managing Director As the initial shock of the COVID-19 pandemic began to subside, investing in healthcare went in the opposite direction. We saw and continue to see private equity firms and search funds investing more and more money into healthcare, with no indication that this trend is slowing down. What’s fueling these […]
All Buyers Are Not Created Equal: Vetting Your Potential Growth Partner
by Jonathan Hadley, Managing Director If you are contemplating selling your healthcare business, you’re probably thinking of finding a strategic partner. A strategic buyer not only speaks the same language as you do but clearly understands the financial mechanisms of your company. One might believe a strategic partner would bring the highest valuation for a […]
What to Know by Dave Turgeon, Managing Director and Jack Turgeon, Senior Consultant The Centers for Medicare & Medicaid Services (CMS) recently proposed a new rule for home- and community-based services (HCBS) that would make major changes to the way home care workers are compensated under Medicaid. What’s most significant about the proposed changes is […]
5 Ways to Prepare for Selling Your Business in Today’s Economy
A question we frequently get asked these days from potential sellers of healthcare businesses is, “Considering the current market and economy, will my valuation take a hit?” The reality is that this is a yes and no answer. The overall healthcare M+A market has been a bit slower as of late compared to the feverish […]
Choosing a Buyer: Private Equity vs. Search Fund vs. Strategic
Once you’ve decided to sell your healthcare company, one of the biggest decisions you may need to make is which type of buyer you will choose. If your company attracts a variety of buyers, you’re likely to have a choice between private equity (i.e., financial buyer), search fund, and/or strategic buyer. All generally have the […]
ViVe 2023: Big Focus on Advanced Technologies and Additional Highlights
I was fortunate to attend the ViVE Conference in Nashville earlier this week. If you are not familiar with ViVE, which launched in 2022, it merges the leadership of College of Healthcare Information Management Executives (CHIME) and the HLTH digital marketplace. The meeting is designed to bring together senior and executive digital health decision-makers who are […]
Today I want to talk to you about quality of earnings (QofE or QoE). I want to focus on this single concept because it’s become one of the reasons — if not the leading reason — why healthcare transactions go sideways. Before I get further into this discussion, I thought it would be helpful to […]
New Kids on the Block: Shakeup in Home Medical Equipment Manufacturers
The home medical equipment (HME) industry was long dominated by legacy manufacturers with a high barrier of entry. But over the past few years, we’ve begun to see cracks in the decades-old status quo emerge. Cracks may be an understatement. What started as cracks in the industry has led to the levees breaking and the […]
Reflections on Healthcare M+A in 2022 and Expectations for 2023
2022 proved to be a year that did not live up to everyone’s expectations. Riding on a wave of furious M+A activity in 2021, the initial optimism was met with bewilderment as buyers became increasingly selective and cautious in the transaction process as they sought to mitigate risk. Deals that were expected to be straightforward […]
Confidential Information Memorandum (CIM): Its Key Role in a Sale
There’s the expression, “You never get a second chance to make a first impression.” For many healthcare business owners thinking about selling their company, the first impression they may personally make on prospective buyers will come from a confidential information memorandum (CIM). And if that CIM doesn’t represent the business in a professional, positive, and […]
by Kim Harrison, Financial Analyst The goal of the accounting function in any business, including healthcare, is to report on a company’s transactions of economic substance. Financial reporting should be communicated in a way that is accurate, consistent, and timely. In the United States, accounting practices must adhere to generally accepted accounting principles (GAAP), which […]
