Mergers and Acquisitions
The Impact of Healthcare Reform
Healthcare reform has affected everyone involved in the delivery and support of medical services. Pricing pressures have been broad based with all healthcare segments looking to provide products/services that meet the needs of a highly cost oriented managed care environment. Everyone in the system has been impacted; hospitals, physicians, insurance companies, manufacturers, providers of ancillary services, employers, and the individual. With the added pressure of meeting short-term financial goals, companies within the medical industry are facing more sophisticated business challenges today than at any time in history.
Working with Clients to Enhance Corporate Value
HealthCare Markets Group assists its clients in realistically evaluating their prospective situations, in preparing business and financial plans, and in charting future corporate development and financing requirements. Regardless of transaction size, each assignment receives the personal attention of one of the Firm’s principals and several senior associates. This assures the Firm's clients of the involvement and guidance only an industry specialist can provide.
The diverse medical knowledge and investor network of Healthcare Markets Group associates are pooled to assist clients in financing acquisitions, management buyouts, corporate restructurings, joint ventures and start-ups.
Working As a Peer
The Firm’s extensive medical industry experience provides a basis for the principals and associates to work with client management and owners on a peer level.
Representing the Seller
HealthCare Markets Group principals guide every phase of the sale transaction. The Firm’s extensive transaction database, contacts, and research capabilities ensure that sellers are well informed before a transaction about expected valuation, potentially interested parties, the conduct of the sale process, and the length of time before a transaction should be completed.
HealthCare Markets Group has experience in all elements of the sale process, from the publicly announced auction process, in which the seller publicly declares its intent, to private negotiated sales conducted in confidence with a limited schedule of potential buyers. Because of its wide awareness of buyer intentions, the Firm can accommodate a seller with a pre-emptive price target very efficiently.
By contacting only qualified buyers, the Firm can increase price, improve terms and accelerate closing. By working closely with the Firm’s corporate finance team, merger and acquisition specialists can base their structuring and negotiating services on authoritative assessments of their client’s current value as well as proforma value based on alternative acquisition scenarios. HealthCare Markets Group conducts the price and terms negotiations with buyers, and then, with seller’s counsel, negotiates the definitive agreement and shepherds the transaction through to closing.
HealthCare Markets Group monitors the acquisition preferences and strategic objectives of companies on an international basis. The Firm understands the parameters used by these buyers to evaluate acquisition opportunities, who the key participants are within the decision making hierarchy and what transaction process will maximize returns for the seller.
On a global basis, HealthCare Markets Group can assist its clients to divest of divisions, subsidiaries and product lines that no longer meet global corporate objectives. The Firm can represent the company as its investment banker in the sale of the business unit, or structure a management or leveraged buyout transaction. In addition, for those companies looking to raise equity to enhance growth or improve liquidity, the Firm can attract an investment partner whose vision and operational philosophy match the needs of the seller.
Representing the Buyer
HealthCare Markets Group provides assistance from the initial strategic planning stages through closing.
Whether the best route for the client is to grow internally or to acquire or merge with another firm in its own or a related industry, the Firm can put its organization to work on the client’s behalf quickly and discreetly. The Firm seeks out complementary businesses that will add value to its client's organization, at the right price. In most instances, the Firm will already have had contact with the acquisition candidates. Together with market intelligence gathered by the Firm, this familiarity can better prepare a client prior to the initial approach. In the delicate process of searching for and screening potential sellers, HealthCare Markets Group's experienced industry professionals exercise skillful judgment to preserve relationships and reputation.
HealthCare Markets Group comprehensive approach to the transaction includes an assessment of performance, compatibility, legal and accounting issues. Moreover, the Firm focuses heavily on management and cultural issues specific to each transaction.
The Firm looks beyond the hard factors in analyzing a target company, quantitative analysis, strategic compatibility, and legal requirements to execute a transaction. HealthCare Markets Group utilizes a proprietary model to evaluate organizational and cultural compatibility.
In addition to the purchase transaction, HealthCare Markets Group provides the buyer with an outline of the steps required to ensure successful integration of the companies, after the sale is completed. The Firm believes successful mergers and acquisitions involve more than business synergy, since the integration of people continues long after the integration of assets.
