Your Primer to Healthcare Mergers and Acquisitions

Author: Alan J. Hymowitz

Exit Planning, Market Trends
Completing an M&A Deal in the COVID-19 Era: What You Need to Know

Pre-COVID-19, a merger and acquisition (M&A) deal that followed an 80/10/10 structure was fairly common. In such in a transaction, up to 80% of a company's purchase price would be afforded to the seller as an upfront, cash proceed, at least 10% of the company's purchase price would be in the form of rollover equity, and at least 10% of the company's purchase price would be in the form of deferred proceeds (e.g., an earn-out or seller note).

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Healthcare Sectors, Market Trends
7 Noteworthy Coronavirus News Developments for Pharmacies

While all of healthcare has been hit hard by the rapid spread of the novel coronavirus, some industries have been affected more than others. Much of the news has focused on the impact to those facilities providing care to clients and patients, such as nursing homes, senior living, hospitals, and urgent care centers, there's another industry that's been greatly impacted but is under the radar: pharmacy.

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Healthcare Sectors
Fall of Diplomat Pharmacy: 10 Things That Went Wrong

In July 2015, Diplomat Pharmacy was the talk of the town. Momentum seemed like it was on the company's side, with Diplomat looking poised to be a major player for many years to come. But, as it is often said, "the higher they rise, the harder they fall." In December 2019, UnitedHealth Group's OptumRx agreed to acquire Diplomat for about $4 a share in cash. What caused this "All-American success story" to come up so short on expectations?

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Healthcare Sectors
What I'm Listening for at the National Association of Specialty Pharmacy Meeting

What are the current developments concerning specialty pharmacies? Alan Hymowitz takes a closer look at five key areas.

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Healthcare Sectors, Market Trends
Trends in Retail Pharmacy: 8 Numbers to Know

This article examines some of the key trends, developments and disruptions in the retail pharmacy. Here are eight statistics and figures that help paint a clearer picture of where the industry is now and where it may be heading.

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Exit Planning, Healthcare Sectors, Market Trends
Why You Should Sell Your Business In 2019 (Part 1)

Consolidation in healthcare picked up steam in 2018 and shows no signs of slowing down in 2019. This trend, along with other factors, is placing great pressure on providers of healthcare services to address a critical question: Is this the year to sell?

For many providers, the answer should be simple: yes.

In this first in a two-part series, two of our Managing Directors speak to why pharmacies and intellectual or developmental disabilities (IDD) service providers should sell in 2019.

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Healthcare Sectors, Valuation
What's The Value Of Your Independent Pharmacy (Part 2)?

As we indicated in our recent article, “What’s The Value Of Your Independent Pharmacy (Part 1)?,” the market for independent pharmacies continues a very dynamic run. Private equity, strategic consolidators, and other investors are looking to add scale and locations, whether special needs/long-term care (LTC), retail, home infusion, compounding, nuclear, or hospice pharmacy.

Numerous factors have contributed to the strength of the “perfect storm” in the pharmacy marketplace and include...

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Healthcare Sectors, Valuation
What's The Value Of Your Independent Pharmacy (Part I)?

Today, there are over 22,000 independent pharmacies out of a total of over 61,000 pharmacies nationwide. In addition, independent pharmacies drive over $73 billion of industry revenue with all signs pointing to continued growth. Customer demand is driven by our aging population, new forms of insurance reimbursement, increased awareness of health issues, advances in medical treatments, and longer lifespans. In the latter case, more and more people are seeking the very products and services that independent pharmacies provide.

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Healthcare Sectors, Market Trends
5 Big Challenges (And Opportunities) In Today's Independent Pharmacy Marketplace

The independent pharmacy marketplace has become one of the most competitive in all of healthcare. Despite the presence of CVS, Walgreen’s and RiteAid on nearly every street corner in America, independent pharmacies are beginning to increase in number. They vary from compounding pharmacies that serve the increasing demand from veterinarians and animal owners to the rapid expansion of special needs pharmacies that respond to the requirements of the aging and disabled Medicaid population.

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