PE Firm Activity 2019 Results

PE Firm Activity 2019 Results

Bain & Company’s recent Global Private Equity Report 2020 highlighted some slowdowns in investments across the board, writing that global buyouts from private equity (PE) firms dropped to 13% of M&A deal value in 2019, compared with 15% in the previous two years. A survey cited in the report stated that 57% of PE fund general partners interviewed think the economy has reached a cyclical peak, while 14% think it has already entered a recession. However, in the healthcare services industry, PE firms and their portfolio companies are more bullish, confident against signs of a recession and chatter about “Medicare for All” in the Democratic presidential primaries. * =... Read More »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »
2019’s Biggest Healthcare Deals, by Sector

2019’s Biggest Healthcare Deals, by Sector

2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018. Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the... Read More »

Private Equity Stormed PMG Sector in 2019

Even with just our preliminary data, private equity dominated dealmaking in the Physician Medical Groups (PMG) sector in 2019. According to our Deal Search Online database, PE firms and their portfolio companies (PE Buyers) accounted for roughly 71% of M&A activity in the sector, or 152 deals. And although we found dealmaking in nearly every specialty, from OB/GYN to radiology, it was heavily concentrated in three particular fields: dermatology, dental, and ophthalmology. Source: HealthcareMandA.com, December 2019 There were 49 deals focused on ophthalmology practices in 2019, a significant jump over every other specialty, and it was a select group of buyers driving the deal volume.... Read More »
Doc Group Deals Take Health Care in New Directions

Doc Group Deals Take Health Care in New Directions

With more than 180 deals announced so far in 2019, the Physician Medical Group sector is roaring toward another strong close. The usual specialties—dental, dermatology and ophthalmology—are still very active, but after 10 to 20 years of consolidation, their trajectories are flattening. Other specialties are gaining traction with private equity investors, particularly orthopedics, gastrointestinal (GI), urology, pain management and women’s health. Even ear, nose & throat (ENT) deals are picking up. We spoke with a few deal makers to find out where this sector stands at the end of 2019 and what’s ahead for M&A in 2020. The hot areas this year have been surgical subspecialties,... Read More »
DentalOne Partners Sold to PE-Backed Group

DentalOne Partners Sold to PE-Backed Group

Mid-Atlantic Dental Partners, a portfolio company of S.C. Goldman & Company, LLC, recently announced it acquired DentalOne Partners from Dental Investments, LLC. DentalOne is one of the largest dental service organizations (DSOs) nationally with approximately 150 affiliated offices across 13 states and 27 markets. This acquisition increases Mid-Atlantic Dental Partners affiliated offices to more than 240 operating in 18 states. Mid-Atlantic and S.C. Goldman has been quiet on the M&A front for the past year. In October 2018, the company acquired Birner Dental Management Services, Inc. for $19.9 million. Birner operates dental practice affiliates under the Perfect Teeth brand in... Read More »