There were 1,900 deals in the space last year, according to Connecticut-based publisher Irving Levin Associates in its 2019 report “Seniors Housing & Health Care M&A in the 21st Century.” For buyers, the cool kids on the block were long-term care facilities and physician medical groups, which led the charge for deal-making and consolidation.
Private equity is on the prowl for good deals in the healthcare space right now. There’s a lot of competition and money searching for an investment opportunity. Sometimes, those opportunities involve public companies looking to go private.
Keith Pagnani of the law firm Sullivan & Cromwell and Andrew Rymer of the investment bank Centerview Partners talk about what’s driving healthcare deals and what the regulatory process looks like for transactions.
In the fight against shareholder activism, Facebook won. At least for now. Activists pushed the company to split the chairman and CEO role for Mark Zuckerberg, who holds both titles and has come under a barrage of criticism over his handling of security and privacy issues in the last year.
Every year, growing companies consider exploring public markets, where they can find the huge benefit of immediate access to capital. But taking that step also can be a large expense, and it can change the way companies operate, what management teams focus on and how autonomous they are. Senior executives making decisions about going public have a lot to think about.
Corporate fascination with M&A hasn’t eroded in 2019, and health care is a major area in the M&A game this year. Yet, the path to growth, according to this group of CEOs, is not through M&A.
Expect the pace of private equity-driven healthcare M&A to continue due to available capital and plenty of opportunities across a broad industry.