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 »
Cimarron Healthcare Enters Behavioral Health Space
Two private equity firms exited an investment and one dove into it. The target, Ascent Behavioral Health, is a portfolio company of Monroe Capital and Veronis Suhler Stevenson. The Salt Lake City-based company provides wilderness therapy, residential treatment and therapeutic boarding school programs for adolescents with mental health issues such as depression, anxiety and attachment disorders. Financial terms were not disclosed. The buyer, Cimarron Healthcare Capital, which is also based in Salt Lake City, focuses on investments in the lower middle market. Its portfolio consists of AMPS (Advanced Medical Pricing Solutions), a healthcare cost management firm; Linen King, which provides... Read More »
PE-Backed Phoenix Rehabilitation Adds New Clinic
Phoenix Rehabilitation and Health Services Inc. has been on an acquisition spree since Audax Group acquired the group in December 2018. The rehabilitation firm has reported three deals since then, growing at a steady pace across the country. The partnership first reported a deal last September, acquiring Black Mountain Physical Therapy in Black Mountain, North Carolina. Black Mountain offers a range of treatment including skilled manual therapies, therapeutic exercises, and neuromuscular reeducation to treat biomechanical and structural problems. The clinic gave Phoenix a foothold in the North Carolina market. Just before the end of 2019, Phoenix acquired a physical therapy clinic in in... 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 »
Autism Therapy Tops PE’s List in December
A good number of behavioral health care deals have been announced in Decmeber 2019 and the majority of those target companies providing therapy services to individuals with autism and intellectual and developmental disabilities (I/DD). Seven deals in the Behavioral Health Care sector are on the books mid-way through the month and five offer some form of applied behavior analysis (ABA) therapy or services. The two remaining deals target companies specializing in residential substance abuse treatment and inpatient addiction and eating disorders for teens. Thomas H. Lee Partners announced the only deal to disclose a price. The firm paid $415 million (16.6x EBITDA) for Centria Healthcare, a... Read More »Schedule a demo
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