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 […]

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‘The Deal Killer’: What to Know About Quality of Earnings

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 […]

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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 […]

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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 […]

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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 […]

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Revenue Recognition Framework for Healthcare Companies

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 […]

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Market Pulse: Behavioral Health & I/DD

In this column, I’m going to share my thoughts on today’s behavioral health and intellectual and developmental disability (IDD) markets. I’ll speak to the macro environment because those issues are impacting the decisions of buyers and lenders. In turn, these issues impact the values buyers are willing to pay for your company. I’ll also address […]

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Considering Selling Your Healthcare Business? Please Don’t Do This

In this column, I want to talk about an alarming and growing trend — one that’s leading to healthcare business owners getting paid much, much less than they deserve for their company or other potentially disastrous outcomes. This trend concerns owners selling their companies to cold callers. We’ve all received cold calls. Someone calls you […]

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‘Certainty of a Close:’ A Crucial Healthcare M+A Factor

It may seem like a no-brainer that healthcare business owners who are about to embark on a transactional journey would have considered how likely a potential buyer is to actually facilitate the close. Yet surprisingly, this idea of “certainty of close” is often overlooked by would-be sellers in potential healthcare M+A transactions. When this factor […]

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SUD Buyer Study: Key Takeaways for Healthcare Business Owners

The information covered in the following column is derived from two sources. First, VERTESS recently conducted a survey of more than 20 buyers of substance use disorder (SUD) treatment providers on a variety of topics, including acquisition strategy and market trends. Second, I engaged in extensive discussions with fellow VERTESS team members who collectively are […]

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Preparing Your Healthcare Company’s Financials for an Exit

During the healthcare M+A process, the benefit of accurate financials cannot be understated. Financial reporting is the foundation on which your business is valued, and meaningful data presented in an organized fashion can lower a buyer’s perceived risk. This likely means more money in your pocket on the closing date. Yet, it is an all-too-common […]

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Mark Cuban Cost Plus Drug Company: How Will it Affect Retail Pharmacy?

About six months ago, the Cost Plus Drug Company, entrepreneur Mark Cuban’s online pharmacy, officially launched. As of late, the pharmacy is receiving significant media attention, including a study published in the journal Annals of Internal Medicine which showed Medicare could have saved nearly $4 billion in 2020 by purchasing generic drugs at the same […]

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