Your Primer to Healthcare Mergers and Acquisitions

Category: Exit Planning

Exit Planning
The Value of an M&A Advisor From Those Who Used One

At VERTESS, we are often asked what value we can bring to sellers as they decide to sell their business. We often talk about our large contact list of buyers and our experience as a business operator/owner and seller or as a merger and acquisition (M&A) advisor.

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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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Exit Planning
Planning The Exit From Your Business

For anyone running a business, it is always important to develop a succession plan. Who will take over leadership if someone moves on? How will you keep the cogs turning when you have a change in control? Yet many small- to mid-sized business owners are so mired in the details of the day-to-day operations that they don't consider such changes since they take on staff responsibilities until someone else rises to the occasion. But if you run an organization, you need to be asking yourself: Who will step in when you're ready to step away?

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Exit Planning
Creating Value in a Healthcare Transaction Through a Letter of Intent

"Have you signed an LOI yet?" This may be one of the most important questions at the outset of a healthcare transaction. Many times, the parties believe a handshake agreement can be magically transformed into a comprehensive and binding contract without change or disagreement. Inevitably, however, the terms of the handshake agreements shift—and continue to shift—until one party surrenders. That is, unless a letter of intent, or LOI, is entered into by the parties.

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Exit Planning
Struggle For A Sale: 7 Reasons Businesses Initially Don't Sell

The VERTESS team of mergers and acquisitions advisors have seen many successes in their careers. We've also witnessed some failures when representing healthcare owners who could not sell their businesses. For some of these owners, their window of opportunity was lost for good. Fortunately, for others, they were able to eventually complete a transaction, but often learned some difficult lessons in the process.

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Exit Planning
Peace of Mind and the Emotional Transaction

For sellers, there are many factors to consider when evaluating typically complex offers. Once our team gets a business out to buyers, we take competing bids and provide a side-by-side analysis to sellers to help simplify how offers compare with one another. Our job as mergers and acquisitions (M+A) specialists is to explain these in their entirety. Owner financing, carried interest, and indemnification caps all present (possible) future opportunities and/or problems. When these side-by-side comparisons are completed, there is almost always a clear monetary winner. But is it all about the money?

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Exit Planning, Healthcare Sectors, Valuation
Thinking of Selling Your Urgent Care Center?

The healthcare industry is continually in flux. Business owners and operators of urgent care centers (UCCs) are constantly experiencing changing regulatory guidelines and suppressing reimbursement from payors. These unpreventable changes and a demanding environment may lead owners to seek monetization of their assets. For those UCC owners considering selling, there's good news: The marketplace is currently hungry for your companies and buyers are eagerly gobbling up well-performing UCCs.

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Exit Planning
What to Expect When You Sell Your Healthcare Company

We're in that time of the year when business owners see their year-end financials and begin to make decisions for the upcoming year(s). Oftentimes, the succession planning you had in mind when you started the company, such as passing the torch to a family member, doesn't look as promising as you had hoped (if you even planned that far ahead). If succession planning isn't an option for you, there's one that almost certainly is: selling your company.

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Exit Planning
9 Reasons Why Mergers Fail (and How to Avoid Them)

Seven out of 10 mergers and acquisitions fail. Why would you consider selling your business with these statistics. We'll highlight nine causes for failed mergers and how to address these shortcomings.

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Exit Planning, Healthcare Sectors
DME Entrepreneurs: Go With a Financial Partner for the 'Whole Enchilada'

Financial buyers, particularly private equity groups (PEGs), are currently in heated battles with strategic buyers for quality durable medical equipment (DME) deals. Well-run, well-managed DME companies are at the forefront of such intense competitions as they seek all-time-high valuations from financial and strategic pursuers alike.

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Exit Planning, Healthcare Sectors, Market Trends
DME and HME Owners: Take Advantage of This 'Goldilocks Market' (While You Can)

There's some good news for owners of durable medical equipment (DME) and home medical equipment (HME) businesses: The transactions market (i.e., mergers and acquisitions) is not too hot and not too cold, but just right at the moment.

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Exit Planning, Healthcare Sectors
Finding the 'Sizzle' in Your Human Services Organization

In years past, strong financial numbers were often enough to hook a qualified buyer. However, these days, buyers — especially those pursuing intellectual and/or developmental disability (I/DD), mental health, and substance use disorder treatment organizations — are looking for much more. They want to see if the organization has special qualities; something that stands out and will help propel the organization to new heights under new ownership. They are looking for the "sizzle."

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