I often receive calls from owners of human services companies who say something along the lines of, "I don't know what I don't know" concerning selling their company. What's important to understand is that it's okay not to know everything about selling a company. It's a complex process, which is why most successful sales involve a team working together toward a common goal.

As we approach the end of year, it's a good time to look back and identify some of the more significant pharmaceutical developments from 2020 that are playing a role in influencing or reshaping the industry. Here are eight noteworthy trends that emerged or gained steam this year that are likely to follow us into 2021 and beyond.

The concept of a "fundless sponsor" started in the 80's. Recognizing that this name might carry a negative connotation, it was changed to "independent sponsor" — a more palatable moniker. In a similar vein to independent sponsors is a "search fund," but for the purposes of this article, we will lump them together.

Volume 7 Issue 20, October 13, 2020 by Jeffrey S. Baird, Esq., Brown & Fortunato, P.C. Two common questions I am often asked by owners of healthcare businesses considering whether to sell their companies are: 1) If I sell my business, can I still get audited? 2) If I do get audited after selling my […]

While I would never claim to have a crystal ball, I can tell you that there are a few issues that will likely have significant effects on respiratory-focused durable medical equipment (DME) companies going into and during 2021. Here are three that stand out.

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.

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).

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?

How is the COVID-19 pandemic going to affect healthcare businesses in the short and long term? We asked leaders from several companies to share their responses to this question, which are below. Following these responses, David Coit of VERTESS shares his thoughts about how the health crisis is affecting healthcare business valuation.

"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.

Much has been said about the social and business opportunities buried within the COVID-19 crisis. Who hasn't been on a video conference when someone tried to invoke Sir Winston Churchill's quote: "Never let a good crisis go to waste."

In the middle of May, I had the opportunity to participate in a conference call with leaders in the field of providing support services to individuals affected by intellectual and/or developmental disabilities (IDD) during which we discussed the impact of COVID-19 on our services. This group consisted of direct service providers, area agency/managed care providers, and those who help with consulting and/or planning services. Representatives shared their current perspective of COVID-19 and how their services were affected, how they are planning for the "next phase" of communities opening back up, and the possibility of another lockdown.