Mauch Business Solutions’ Post

The healthcare M&A and private equity space is feeling the pinch. Down more than 70% from peak dealmaking times in the fourth and second quarters of 2021. #healthcare #privateequity https://lnkd.in/em7U_EpT

Healthcare among the hardest hit sectors for M&A activity with deal volume down across the board "...PE dealmaking in the broader market across all sectors has fallen by an estimated 29% from its high in Q4 2021..." Although comparing any year to 2021 might be misguided. Perhaps not all doom and gloom - we are seeing activity pick up again in certain areas. https://lnkd.in/ebXe2mUT

Discover how @LatticeworkCapital's new $345M LCM Healthcare Fund II is set to accelerate growth in lower middle-market healthcare companies. #PrivateEquity #HealthcareInvestment #GrowthCapital

While analysts expect PE healthcare managers to continue to deploy capital into current portfolio companies and into lower-middle-market acquisitions, they also note that the nature of PE healthcare investing is changing. https://lnkd.in/d-hKAadW?

Great conference by McDermott Will & Emery in #London on topics concerning #privateequity #healthcare #investors Key insights: 1. Deal sectors: Pharma services remains a strong sector, in addition to MedTech, Life sciences tools, Specialty pharma 2. "Take-private' becoming attractive with examples of deals happening in Pharma services (ARCHIMED-Instem, ERGOMED-Permira) and other sectors 3. Getting deals done in current environment involves using mechanisms as earn-outs, fund facilities, vendor loans 4. Anti-trust scrutiny increasing even for financial sponsor backed deals 5. Strong pitching activity, #deal pipelines with #investmentbanks 6. "Expect to see 20 SIMs on your desks" - in coming months as summarised by a #healthcarebanker 7. General consensus that Q4 #jefferies, Q1 #JPM will be busy for #healthcare deals Medi-Tech Insights #manda #acquisitions #healthcare #privateinvestors

We are pleased to release our review of M&A, private equity and venture capital activity across the UK healthcare sector in Q1 of 2024. Our report, which can be found below, highlights the most active sub-sectors, along with a month-by-month summary of the key deals across the market. #healthcare #privateequity #venturecapital #corporatefinance #investmentbanking #mergersandacquisitions #mergersacquisitionsdivestitures

Private equity firms are showing significant interest in RCM companies, with a surge in activity seen throughout 2023 and into 2024. In 2022 alone, RCM companies were involved in 21 private equity deals, including 18 add-ons and three buyouts. Recent highlights include: > Aquiline Capital Partners Partners' investment in Health Prime International and acquisition of a stake from GPB Capital for US$190 million in 2024. > New Mountain Capital's offer to buy out the remaining ownership of R1 RCM at a staggering US$5.8 billion in 2024. > TA Associates' substantial growth investment in Alpha II - Healthcare RCM, a leading provider of RCM technology solutions to healthcare providers, in 2023. > ECLAT Health Solutions Inc, a portfolio company of Gulf Capital, acquiring the Health Information Management (HIM) division of Excite Health Partners in 2023. > WellSky, a portfolio company of Leonard Green & Partners (LGP) and TPG Capital, expanding its medical coding and RCM offerings with the acquisition of Corridor from HealthEdge Investment Partners in 2023. The question arises: why is this happening, and how will it impact the industry? Find out more in this insightful blog by my colleague Vivek Kumar https://lnkd.in/gQc2FCH5 #RCM #PrivateEquity #HealthcareInvestments #IndustryTrends #EverestGroup #TheHealthcareAnalyst

This morning's $395m* acquisition of Healthia by Pacific Equity Partners is a text-book example of the value accretion availed from acquiring small entities and bundling them into a bigger entity and generating value in the process. Healthia's, a 334 clinic business, will trade at 10.3x EBITDA multiple, Back in Motion's 74 clinics traded at 7.2x EBITDA multiple and the much smaller acquisitions traded at circa 5x EBITDA multiple. Why do we get higher valuations for bigger businesses but all else being equal? Partly it is reduced risk (small businesses have key person reliance and high revenue leakage risk). But the biggest factor is that Institutional Investors (where the big money goes) only want to write big cheques, that's their economic model. What does this tell you? There's always going to be better value / better returns investing into small and emerging businesses .... for those who are comfortable with that level of risk and illiquidity. This is not investment advice and investing into emerging businesses is a bad idea for most people. * $395m Enterprise Value comprised $252m in ordinary shares, $38m in Clinic shares and $103m in borrowings & performance rights.

We are pleased to release our review of M&A, private equity and venture capital activity across the UK healthcare sector in Q2 of 2024. Our report, which can be found below, highlights the most active sub-sectors, along with a month-by-month summary of the key deals across the market. #healthcare #privateequity #venturecapital #corporatefinance #investmentbanking #mergersandacquisitions #mergersacquisitionsdivestitures

As healthcare undergoes seismic shifts, the marriage of private equity and medical practices takes center stage. From financial injections to workforce dynamics, understanding private equity’s influence is crucial. In this guide, we cover the basics, weigh the pros and cons, and shed light on the path ahead.