Vital Signs Strong For Healthcare M&A
Despite the weak M&A market, healthcare information and technology transactions are getting done—at prices that reflect the excellent long-term macro trends in healthcare information and technology markets. In recent months, our team has closed two of the most noteworthy M&A transactions in these markets: Relsys and UpToDate, both commanding high valuations.
Healthcare deals are getting done with strong valuations.
As we suggest in the article written for The Deal magazine, healthcare information and technology companies are defying the trend of falling valuation. There is strong acquisition demand for unique or market-leading companies by the many large healthcare information and technology providers. These buyers—both strategic and financial—have significant investable cash available and are looking to grow through acquisition. The current limited supply of acquirable businesses creates a seller’s market that supports strong valuations based on high multiples of revenue and cash-flow. Both strategic companies and financial investors are eager and able to acquire businesses in all-cash transactions that tend to be quick, smooth and favorable to sellers.
Strong demand, low supply of quality healthcare information businesses creates seller’s market.
We expect this situation to persist at least into mid-2010, when more sellers of healthcare information and technology assets begin to return to the market and rebalance the supply/demand equation. At the same time, we believe that the movement toward healthcare reform legislation—however the final bill turns out—will only add to the value of information and technology companies. Businesses which offer healthcare products and services that ultimately improve patient care, facilitate information workflow, increase efficiency, lower costs, and reduce risk in the healthcare marketplace will be in especially high demand.
Now is the time to explore your options to enhance your liquidity and fashion a timely exit strategy by talking with the Berkery Noyes healthcare information and technology investment banking group. We are available to discuss your individual market and situation, and to provide you with valuable insight into how an M&A transaction can help you realize your strategic and financial objectives.
Now is the time to consider selling your business, improve personal liquidity, maximize value.
With more than twenty-five years of experience closing hundreds of deals, and our proprietary information on tens of thousands of companies in the worldwide information marketplace, no one is better able to provide you with the personal, focused, knowledgeable and confidential transaction advice you need to make informed decisions and maximize the value of your business assets.
If you’re considering growth through acquisition, the sale of a business, a timely exit strategy, or a financial restructuring, call Tom O’Connor or Jeff Smith. at 212.668.3022.
Transactions
My Favorite Therapists Receives a Strategic Investment from 5th Century Partners
Atlantic Health acquires Thompson Healthcare & Sports Medicine
Berkery Noyes Represents Telelanguage in its Acquisition by Propio Language Services
Berkery Noyes Represents Bluespire in Their Acquisition by GlynnDevins
SpendMend Acquires TurnKey Pharmacy Solutions and Elevate340B
